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Public firms going to private

Public firms going to private

by Rick Turoczy on January 10, 2005

First John Q. Hammons Hotels Inc. announced it would privatize.

Then the Paul Mueller Co. announced it, too, would withdraw from the stock market.

Who’s next?

The answer partly hinges on the cost of complying with 2002′s federal Sarbanes-Oxley Act, which sought to increase accountability among public companies in the wake of massive fraud at Enron and WorldCom.

But increased accountability means higher costs, which are causing nationwide concern and are helping push some companies — especially smaller ones — out of the public arena entirely.

“It’s a huge, huge problem for (smaller companies) because of the tremendous cost it is adding,” said Larry Ellison, a partner with Springfield accounting firm Kirkpatrick Phillips & Miller, CPA PC. “… I can guarantee you there are a number of companies that are investigating the possibility of delisting and going back to private.”

Public firms going to private

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