Resources for Sarbanes-Oxley (SOX)

Fear of Higher Taxes a Cause of Sell-off

seekingalpha.com

Spending a lot of my time with tech/telecom executives – many in smaller companies, and private companies – I have recently begun to notice a major trend, which had been present in other corners of the market for about 6-9 months earlier, but is now reaching new ground. What I am talking about are asset sales targeted for 2008 closings, in order to avoid higher capital gains taxes in 2009 and beyond.

Specifically, CEOs and board members especially of smaller and private companies have expressed to me a desire to sell their companies in 2008, as opposed to infusing more capital and/or look to IPOs for exits. You may have noticed an almost complete absence of venture-backed IPOs in the first half of 2008. Instead, acquisitions are becoming the only exit of choice – er, necessity.

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