Robert Grady, managing director at the Carlyle Group, told CNBC’s “Morning Call” that Sarbanes-Oxley imposes unreasonable costs on small companies that may delay their decision to go public.
“The evidence is beginning to accumulate rapidly,” Grady said Friday. “For the last six years in a row, there have been an average of 27 technology IPOs per year on Nasdaq. That compares to an average of 157 per year through the decade of the 1990s – not just in the bubble. There’s been a radical fall-off.”
He said major companies can absorb the accounting expenses imposed by Section 404 of Sarbanes-Oxley, but small companies cannot.