What is typically the consequence of loss of control for companies going public?

The consequence of loss of control for companies going public is that they face increased pressure to prioritize shareholder interests over management interests. When a company becomes publicly traded, it is accountable to a broader base of investors who expect returns on their investments. These shareholders can influence corporate strategies and decisions, pushing management to focus on short-term performance and shareholder value, often at the expense of long-term strategic goals.

Going public means that the company must balance the interests of diverse shareholders, which can create a tension between management's vision for the future and the immediate financial expectations of investors. In this context, management may find itself needing to demonstrate performance metrics that please shareholders, sometimes leading to decisions that may not align with the company's long-term mission or vision.

While the other options touch on aspects of corporate governance and operations that may be affected by going public, they do not directly address the fundamental shift in priorities from management-driven goals to those driven by shareholder expectations, making the focus on shareholder interests the most significant consequence of loss of control in this scenario.