Re:Washington Versus Silicon Valley
by mediaman on Friday August 07, 2009 @01:50PM
(#748132)
It's already pretty bad -- one firm I talked to was planning an IPO last October, which they pulled after the markets sank. Prior to pulling, they had to spend $2.5mm preparing for the IPO in legal and regulatory fees (not including bank's underwriting fees).
Think about what that means: for a firm worth $100mm, they would have to spend 2.5% of their net worth just paying lawyers and accountants to comply with regulations. Never mind the ongoing costs of SOX implementation after the IPO.
Re:Washington Versus Silicon Valley
by mixmax on Friday August 07, 2009 @06:19PM
(#748660)
Without knowing anything about the mechanics of IPO's I'm sure there's a great opportunity for a startup with a heavy finance background. The amounts charged are absolutely absurd.
Think about what that means: for a firm worth $100mm, they would have to spend 2.5% of their net worth just paying lawyers and accountants to comply with regulations. Never mind the ongoing costs of SOX implementation after the IPO.