IPO On-Ramp: The Emerging Growth Company


Originally published in Business Law Today - May 2012.

The JOBS Act springs from a belief that smaller companies are the engines of economic growth and job creation. In this view, the decline of the smaller company IPO market over the last decade threatens the long-term prospects of the American economy, as smaller companies that cannot access the IPO market must either rely on private capital to finance their growth or sell themselves to larger companies.

In an effort to restore vibrancy to the smaller company IPO market, the JOBS Act eases disclosure and other regulatory requirements for smaller companies in the initial public offering process and in subsequent public reporting. The belief is that, over the past decade, smaller companies have been discouraged from entering public markets for capital due to the cost of regulatory compliance, particularly in the wake of the Sarbanes-Oxley Act of 2002 and the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. If we create a new “on-ramp” to public markets by easing the regulatory burden for smaller companies, the thinking goes, more of these companies will seek to go public.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Cohen & Gresser LLP | Attorney Advertising

Written by:


Cohen & Gresser LLP on:

Popular Topics
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.