Time To Go Private?
There is a lot of glamour and prestige that goes with being a CEO at a public company. Do you ever wonder if it’s worth it?
If your company has sales of under $ 1 Billion, it maybe time to consider going private. The cost of being public has increased 200% to 300% due to the Sarbanes-Oxley Act and the new SEC and exchange requirements. For a small company (say under $100 million) these cost can run over $300 to $400K per year. Most estimates of the yearly cost of being public for companies of $1 billion or more are over $1 million per year. This does not address the time and management attention that needs to be directed away from running the business and toward compliance issues.
We are just now beginning to see the full impact of SOX, 404 compliance etc. A year ago I talked to CEOs who were hopeful that some of these requirements might be