In the era of Sarbanes-Oxley, more and more companies – especially small-cap companies – are leaving the public stage and going private.  These companies are facing challenges that can make the switch worth considering, including:

• Decreased access to capital due to lack of attention by analysts and therefore by institutional investors, despite solid operating performance, strong financial controls and consistent quarterly results
• High cost of compliance with Sarbanes-Oxley
• Regulatory environment that subjects companies, directors and officers to substantially higher risk of litigation

The investment banking professionals in Spencer Edwards’ corporate finance practice provide a full array of services for companies considering going private.  We can evaluate companies to determine whether going private makes sense and provide complete advisory and support services for the process, including:

• Choosing the best path to private ownership (tender offer, cash-out merger or reverse stock split)
• Fulfilling fiduciary responsibility to shareholders
• Making required disclosures to shareholders regarding the transaction and its effect
• Navigating complex legal issues
• Complying with SEC regulations
• Creating financial strategies and plans to guide the company after the transaction