Majority of companies that go public on an IPO don't actually need more cash from investors to expand its operations, but private companies go public because a private shareholder wants to sell their stake just to enhance the company's reputation. In today's business world, reputation is everything both to private and public companies. What people think about your company, from products and services to the way it operates determines a lot to the success or go down of the company; either opens doors, or it closes them. Which is why creating and maintaining a strong company profile online is very important. However, some challenges do exist: Process incurs huge costs. Original owners may not be able to sell their shares of stock immediately, as doing so could reduce the stock price. Control of the business goes to the Board of Directors. This may or may not be comprised of the original corporate owners.