Friday, May 14, 2004

Regulation costs leading to MBOs?

According to an article in Financial Times more CEOs of big, public companies are thinking of taking their companies private. The cite the new Sarbanes-Oxley regulations as the prime motivation of going private. This could lead to interesting times for private equity firms and the likes of Berkshire Hathaway, as primarily mid-sized companies will have the ability to go private.

But companies still will want to go public. The new regulations ought to push the size needed to be a public company upwards. As a result VCs will have to stay with their companies longer. Just some ramblings on the topic...

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