New rules are driving small firms into shells, where they could get a nasty surprise.
In the wake of the Google IPO in August, private business ownersare once again daring to dream of taking their companies public.And yet, just as the IPO window may be opening, lawmakers andregulators are working to slam it shut by implementing tough newrules for public companies.
Recently enacted accounting and auditing standards, such asthose mandated by the Sarbanes-Oxley Act, are so onerous thatthey're driving a new interest in so-called nonreporting publiccompanies. These companies offer a comparatively simple process ofgoing public through the purchase of a publicly traded company"shell."
Black Friday Subscription Sale - Unlock this subscriber exclusive article and more for 50% off today.
Access all Entrepreneur content with no ads, unlock discounts, and get exclusive advice only available to our subscribers. Plus, our magazine delivered straight to your door.
Get 50% off an annual subscription today. Just use code SAVE50 at checkout.
Entrepreneur Editors' Picks
Online Scams Are More Sophisticated Than Ever. Here's How to Shop Safely on Black Friday and Cyber Monday, According to a Cyber Intelligence Expert.
This Guy Saved Barbie From Cultural Extinction. He Did It by Asking One Big Question.
The Top 5 Hot Franchise Categories for 2023, According to One Industry Expert
Why Can't We Resist Black Friday and Cyber Monday? A Behavioral Economist Explains the Psychological Forces That Make Sales Irresistible.
I Couldn't Sleep. I Obsessed Over My Failures. Then I Found the Weirdest Cure.
This Pitch Scored a $250,000 Investment — But It Almost Didn't Happen
Employees Were Demanded to Go Home. Here's How We Invite Them to Come Back.