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Sep28
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In short, the second reason to go or remain private is two names: Sarbanes-Oxley.
This law, which creates huge burdens for public companies, fundamentally changes the economics of being public. Without suggesting that this is a complete list, the law requires the following:
- Whistle-blowing: the law requires that public companies create a process for employees to alert an independent member of the board of directors to any concerns
- Officer Certifications: CEOs and CFOs are now required to to certify, subject to civil and criminal penalties, that the financial statements are properly stated
- Internal Controls and Audits: the law set out new standards for internal controls and audits
- 404 Audits: section 404 of the law requires a thorough audit of the financial system and controls, typically at very high costs
- Ban on loans to officers: the law also bans loans to officers
 Independent Board Members: the law requires a majority of independent board members for most companies
- Independent Audit Committees: the law also creates standards for the audit committee, including a strict definition for financial experts serving on the committee
It is important to note that these burdens are just the new burdens. A public company has traditionally needed to have independent audits, provide quarterly and annual reports and to comply with a host of SEC regulations that were challenging before Sarbanes Oxley.
Simpler corporate governance is a big reason to go or remain private.
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Sep27
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Today, I was alerted to the upcoming venture capital conference, "Launch: Silicon Valley Venture Showcase." The event will be held on November 8, 2006. The organizers are looking for great, early stage companies to present.The organizers, however, have asked that...
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Sep26
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As of 2:00 PM Wednesday there are still a few spots left for breakfast tomorrow. ------------------ I have an opening in my schedule on Thursday morning, September 28, 2006. This is unusual. Here's the deal. I'm buying breakfast for the...
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Sep25
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There is a myth among those who promote reverse mergers and such that valutions are much higher for public companies than for private ones. While this is true across all industries, it is largely a function of natural selection. Companies...
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Sep23
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In a recent opinion piece, entitled "Regulation, Yes. Strangulation, No," for the Wall Street Journal, Maurice R. "Hank" Greenberg, former Chairman of AIG, wrote: Three words describe the prevailing sentiment in today's business environment -- private is beautiful. Increasingly, major...
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Sep20
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Seth, I think your point is right on. We can learn to accept mediocrity when we're on a tight budget or we can simply expect excellence. We can all do better!
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I was quoted in the Wall Street Journal on Wednesday (here -- subscription required). In classic media form, the author of the article took what I said, quoted me partially and made a rather different point than I'd intended to...
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Sep18
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This is a great video! Watch it!It's not great because I shot and edited it. An above average monkey could do a better job, but the substance of what Damon says is great.Damon Kirchmeier has won all kinds of races...
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Sep17
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Mark Cuban posts today on why YouTube will tank--soon!He's wrong. I've posted so much about YouTube that you're sick and tired of me talking about it, but he's wrong. YouTube may not be the ultimate winner in what I believe...
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Sep16
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This week marked another milestone on YouTube. Massachusetts Senator Ted Kennedy posted a video on net neutrality--which he favors. I don't have strong feelings about net neutrality, but tend to agree with the Senator's position. More importantly, I love how...
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Sep15
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Today I attended the annual convention for USANA Health Sciences, Inc. (Nasdaq: USNA), one of our clients. (I also own a few shares of the stock.) It occurs to me that there are some principles that we can learn from the direct...
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Sep14
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Alan Hall, founder of MarketStar, founder of Grow Utah Ventures, a partner in Junto Partners and organizer of several angel investor networks here in Utah, spoke to the Utah Entrepreneurial Forum on the Novell (Nasdaq: NOVL) campus in Provo, Utah...
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Sep13
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Today, Pierre Lassonde, President of Newmont Mining Corporation spoke at the Spencer Fox Eccles Convocation at the David Eccles School of Business at the University of Utah. Newmont Mining (NYSE: NEM) is the world's largest gold mining producer, with operations...
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Sep12
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Kevin O'Connor, Senior Vice President of basketball operations for the Utah Jazz spoke to the Association for Corporate Growth this morning. He shared great stories about recruiting and negotiating today, drawing parallels between picking up players in trades, the free...
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Sep11
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Robb has done all the work, identifying 75 great posts on raising venture capital. It's worth the effort to do the relatively easy part and read them!
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Sep 9
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Connect Magazine is conducting a survey to determine the 25 most influential businesspeople in Utah. They have identified 164 candidates, taken from nominees submitted by the magazine's readers. Connect is (quite properly) tracking e-mail addresses and IP addresses to prevent...
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Sep 7
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I support safe markets wholehearted, but the U.S. reduces investor safety by encouraging companies in a flat world to issue shares in other markets, defeating the entire purpose of the original legislation. Let's fix this thing!
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Sep 6
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In about two weeks, on September 18 and 19, the BayHill Group will be holding its annual micro cap conference at Deer Valley here in Utah. This year, they've invited me to participate in the conference. I'm pleased and honored...
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Sep 5
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Here you go: here are my ten ways to get money to chase you (click on any of the links below to read more):#1: Network, Network, Network#2: Network On-line#3: Find Mentors#4: Know the Numbers--Cold#5: Under-promise, Over-deliver#6: Have a Clear Elevator...
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Sep 3
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The New York Times reports that Pegasus Wireless (Nasdaq: PGWC) has come up with what I'll call a a brilliant strategy to thwart a massive wave of short selling. The company faced a short position of roughly 9 million of...
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