Why Private Companies are Adopting Sarbanes-Oxley Rules Voluntarily

Source: Partner’s Report—the Monthly Update for CPA Firm Owners

Interviews of 341 CEOs of private companies reveal that Sarbanes-Oxley appeals to many of them. They are motivated in large part by wanting to adopt best practices, but also as a means to avoid potential business problems, and prepare for the possibility of a sale of the company or a public offering.

The companies that have opted to adopt:

• Average $46.2 million in sales.
• Are growing fast.
• Are somewhat more likely to be service companies than product producers.
• Are also more likely to be technology companies.

From Partner’s Report—the Monthly Update for CPA Firm Owners, August 2005, p. 6. For subscription information contact Institute of Management & Administration, Inc., 3 Park Avenue, 30th Floor, New York, NY 10016-5902. One-year subscription $329. 212-244-0360, [email protected].