Why SOX May Cause “Nanocaps” To Liquidate, Sell Or Go Private
- Tags:
- Accounting,
- Sarbanes-Oxley,
- Regulatory Compliance,
- Regulations,
- Policies And Procedures,
- Operational Accounting,
- Insurance,
- Human Resources,
- Government,
- Financial Services,
- ...
- Source:
- Capital Eyes
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Overview: The increased costs of complying with the new Sarbanes-Oxley Act may be too high for many companies. As a result, one-third of U.S. public companies will likely be liquidated or sold, merged or taken private in the next few years. The cost for nanocap companies remaining public will, therefore, be very high. Set forth below are the major reasons why the annual costs of being a public company could be as much as three times what nanocap companies are now spending. They fall into five categories: increased internal accounting expenses; greater attorney, director and audit fees; and higher insurance costs.
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Format: HTML | Date: Jul 2003 | Pages: 1
