While the likes of KPMG have been crowing about audit fee growth (largely as a result of compliance), Curt Wehrley links to the Cullinane and Green Report podcast that included an interview with Tim Draper of global VC crew Draper Fisher Jurvetson. the interview looked at Sarbanes-Oxley compliance and its impact on business and the markets in the US. Curt was good enough to provide a partial transcript. It makes horrifying reading:
[SOX] is one of the big nightmares that we have in business now. [SOX] came, and rather than just fixing one or two companies that seemed to have some problems, they tried to do something that was blanketed to the entire US corporate world. It has made it so expensive for a public company that these companies that used to be able to go public with $20 million in revenues and growing, and things are going very well, are now in a position where they have to wait until they’re doing $100 million in revenues. So, what used to be a 5- to 7-year process [from start-up to IPO], is now a 10- to 12-year process. And the entrepreneurs are [now] saying, ‘Well gee, I think it’s time for me to sell out, because this IPO thing isn’t going to work for me.’ So this is one of those situations where the US is not properly competing. A lot of the entrepreneurs I’ve talked to who have very successful companies who are going to take them public are going to take them public on the London exchange, or the Singapore exchange, or the Hong Kong exchange, and not on NASDAQ or the New York Stock Exchange because the restrictions and [SOX] have just made it too difficult.
This is an opportunity for small firms to show their AIM credentials. $20 million is a tad over £11 million – easily accommodated in the smaller firm. Another reason to blog – you could link to Curt’s post and it might get picked up in the US – mine do…by about 30% of my total readership. Imagine what that could do for your firm?
Note to Curt: UK markets are more conservative than the US and might need to pick up some high tech expertise. They’re not the lesser for it – but knowledge is a powerful thing. the smaller folk could offer a more attractive fee structure for starters and a more personal approach than you get from the sales-led big boys.
Technorati Tags: accounting, listing, marketing communications, practice management, Sarbanes_Oxley
