Page 135 - John Kador - 301 Best Questions to Ask on Your Interview, Second Edition-McGraw-Hill (2010)

INTERVIEW THE INTERVIEWER

QUESTIONS FOR PRIVATE COMPANIES
Public companies—those raising funds by selling stock—are by law
required to disclose certain aspects of their ownership, organiza-

tion, and financial results. Private companies are not required to do

so, and many such firms stay private precisely because they prefer
to protect these details. You, however, need to understand certain
details of how the company is funded and organized so you can
make an informed decision about whether it’s a good fi t for you. If
you want to make the best decision possible for yourself, there is no
alternative but to ask. The more senior the position you are applying
for, the more expected it is for you to ask the hard questions. Many
of the questions in this book are appropriate for public and private
companies, but the following questions are targeted for private com-
panies only:

1. Is the company profi table?
2. How is the company funded?
3. Who are the investors?
4. How are corporate decisions made?
5. How is the company organized?
6. What are the growth opportunities?
7. Has the company considered filing for an IPO (initial public
offering)?
8. Is private stock available to me? What about stock options?
9. Has the company been approached for a merger or takeover?
What was the company’s reaction to the merger or acquisition
overture? Has that attitude changed?

As former president Ronald Reagan used to say, “Trust, but verify.”

Asking these questions is just the first step. Confirming the accuracy

of the answers is the second.

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