Sarbox Reform Should Boost Small Company, Foreign Firm IPOs

Lora Bentley

If the changes to Sarbanes-Oxley implementation suggested by the Securities and Exchange Commission last month are adopted, the changes should drive an increase in IPOs from smaller companies, says Mark Heesen, president of the National Venture Capital Association.


Heesen is quoted in a Market Watch piece that spotlights a new study conducted by the NVCA in conjunction with Thompson Financial. The survey indicates that 36 IPOs will begin in 2007, as opposed to 16 IPOs this time last year. Without the Sarbox changes, though, VCs will likely look to foreign exchanges and other liquidation strategies.


Though Heeson doesn't mention foreign company IPOs, we would venture to guess that those would also increase in the event that the relaxed delisting requirements proposed by the SEC last month are adopted.

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