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Out of Stock

When your stock price is stalled and you can't hope to improve it, is it time for your company to quietly step back into private life?

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This story appears in the March 2002 issue of Entrepreneur. Subscribe »

At the tail end of an era that spawned the term "IPO envy," opting out of the public sphere may seem inconceivable. Look again. In the right circumstances, going private can be a smart move.

"In the public markets, companies that are less than $1 billion in market cap often get lost in the shuffle," explains Robert Bergmann, managing director of Los Angeles-based private equity firm Centre Partners Management LLC. "[If] they have an earnings hiccup, all the institutional investors flee the stock. Going private can offer a number of advantages vs. being in that drifting situation."

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