Since the introduction of Sarbanes Oxley (“SOX”) the opportunities for emerging growth companies to go public via the traditional IPO route has come to a screeching halt.

If you have any doubts look at the charts covering IPO’s from 1999 through the first six months of 2007 as provided by www.ipohome.com.

The reduced number of traditional IPO’s coming to market is due to a number of factors:

1. The crash of IPO markets in late 2000.
2. The introduction of SOX
3. Risk/Reward for large underwriters
4. Consolidation of the stock brokerage business
5. Disappearance of the small boutique underwriter

I will review these five determining factors in my next blog.

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