Private firms eying public life, mergers get Sarbanes friendly

Sarbanes-Oxley corporate governance rules have been a big burden on public companies that have to establish, maintain and document the flow of financial paperwork to keep in compliance with new auditing standards.

The infamous Section 404 requires public firms to step up paper trails and related quality control standards to help keep their accounting books clean.

Privately held firms have not been forced to hop on that expensive regulatory train. That is, unless they have a public offering or merger with a public company on the horizon.

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