Founders fear they will lose independence and others perceive that the leaders are bailing out on them. In reality, selling the company is a natural way to optimize the system, to allow people to grow and to do what they do best. A company has lasting value only if it's a self-sustaining entity that does not rely on any one person. In the absence of a clear exit strategy, most entrepreneurs tend to be controlling, treating their business like their own sandbox. Companies in this position tend to remain small because decisions are not pushed down to the rest of the organization.
Employees never learn to take charge, and they eventually lose motivation.
The company will stop growing when the entrepreneur runs out of steam. Since small companies cannot go public, these companies are also poorly capitalized to seize new business opportunities. Worse yet, employees who have invested a substantial part of their career become frustrated because they can't enjoy the fruits of their labor by cashing in their stock options. Everyone loses in this model, and yet it's prevalent in our optics industry. A clearly stated exit plan with financial goals that allow people to gain liquidity is a much better approach.