The line of retailers considering initial public offerings is getting longer, with The Wall Street Journal reporting that The Container Store is exploring the option, along with a potential sale to another investment firm. The big-box chain currently operates 59 locations. Private equity player Leonard Green & Partners holds a majority stake in the retailer.
WSJ has published a Q&A with The Container Store Founder Kip Tindell. Here are some of his thoughts on the advantages of an IPO:
"We expect some type of transaction in the future, either public or private, because we are owned by a private-equity firm and it's been over five years.
If we ever go public, it's much easier to get stock in the hands of employees, which is something I'm passionate about. People can't ever do that well financially just on compensation. Financial independence comes from equity.
In a publicly traded company, stock dilutions are a standard operating procedure, but it's hard to grasp in a private company. Even though partners and early investors agree in principle on giving employees more equity, they often change their minds when it comes time to dilute their own stakes in the company."