Start-ups Opt Out of IPO's

The San Francisco Chronicle reports:

"A growing number of entrepreneurs, faced with spiraling accounting costs and stiffer corporate governance rules, are choosing to keep their startups private or sell them to a rival rather than take them public.

For young companies, the choice between going public and selling to a rival was once an easy one. That's because an IPO generates a much higher return -- as much as a third higher, according to some studies -- for the company's executives and early investors.

But in the wake of corporate reforms prompted by a series of accounting scandals, the decision is no longer clear-cut. "

Via Law & Entrepreneurship News