// EXPERT PROFILE //
A STOCK EXCHANGE IN A BOX : THE SOLUTION FOR PRIVATE COMPANIES
The number of UK listed equities is going down , while the number of UK private companies ( with over 100 employees ) is going up . This has been happening over several years and looks set to continue . This demonstrates the need for private companies to trade their shares and create secondary liquidity . Cees Vermaas , CEO of The International Stock Exchange ( TISE ), which offers TISE Private Markets , discusses private markets and the Private Intermittent Securities and Capital Exchange System .
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THE PRIVATE COMPANY SECTOR IS NOW 15 TIMES LARGER THAN THE PUBLIC . AND A LOT OF THESE PRIVATE COMPANIES FALL INTO THE SME CATEGORY .
HE UK ECONOMY is at a
T crossroads , with an increasing number of listed companies choosing to stay private . Low liquidity , the high cost of going and remaining public and economic uncertainty are shifting the UK into a private market economy .
Out of a workforce of 33 million , 27.5 million work for a private company . Over the past decade , the number of private companies has increased by more than 3,096 , bringing the total to 19,150 firms , each employing over 100 people . Meanwhile the number of listed companies has declined by 271 and now stands at 1,260 . The private company sector is now 15 times larger than the public . And a lot of these private companies fall into the SME category .
The cost and complexity of maintaining a public listing has become a financial and managerial burden . Listing on even a junior market like AIM can cost anywhere between £ 200k to £ 800k per year . The fees for brokers and auditors are additional , increasing the financial obligation even more . choosing to remain private for longer or are reconsidering their listed status altogether .
To enable private companies to grow , it is crucial to improve share liquidity for stakeholders and attract investment . As the UK economy moves towards a predominantly private market , we must reassess our approach to corporate growth .
Private companies have historically struggled to find an efficient mechanism for share trading and while there are some existing
It is no surprise that many companies – especially those in the mid-market – are
34 Intelligent SME . tech