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Going Public Comparison Chart by William Cate
Going Public Comparison Chart
By William Cate
http://home.earthlink.net/~beowulfinvestments/
U.S. Securities and Exchange Commission (SEC) regulatory compliance requirements are directly related to the costs of taking any private company public and being a public company in the United States.
For U.S. Domestic companies, attorneys and accountants must put their careers and firms at risk in doing a SEC filing for any company. They will charge their clients in accordance with that risk. Because Non-US company filling requirements don't require an attorney to accept responsibility for the content of a SEC filing and because the accountants aren't required to use GAAP and thus aren't as liable should there be errors in the audit, the costs of professional services are far lower.
The annual filings for a US Domestic Company are more numerous and require attorney and accountant liability for the content of the SEC documents. For these reasons you can take public and maintain the registration for a Non-US company for about one-tenth the costs of taking public and maintaining the registration of a US Domestic Company.
US Domestic Companies Non-US Companies
Initial Registration Initial Registrat
SB2* requires GAAP 20F no GAAP audit audit and attorney and no requirement
responsibility for attorney
for document responsibility
content. for document
* Least regulatory
onerous content.
US Domestic SEC filling form.
Annual Filings Annual Filings
10K requires GAAP 20F no GAAP audit and
audit and attorney no attorney
responsibility responsibilty for
requirement for document
content.
Three 10Q requires There are no other Attorney liable required SEC for document responsibilities forcontent a Non-US Company
Annual Shareholders
Report
Annual General Meeting
Private Placements
Shares Held Shares Held
for one year. for 42 days.
Stock Sale Report Stock Sale Report
Yes No
It is far easier to raise Private Placement money for a company when the required hold period is 42 days rather than one year. The non-US private placement investors are at far less risk of losing their risk capital. They are in a position to make a profit in less than one-sixth the time of an investment in a US Domestic Company. However, both US Domestic and Non-US Firms are subject to US Full Disclosure requirements and investment fraud is a felony in the United States no matter the jurisdiction of incorporation of the company.
If you are the CEO or CFO of a private Non-US Company seeking Private Placement investment or if you are a US Domestic Company seeking to become a multinational corporation, I can help you go public in the United States. Email me at Beowulfinvestments@Earthlink.net
About the Author
He has been the Managing Director of Beowulf Investments [http://home.earthlink.net/~beowulfinvestments/] since 1981 and is the Executive Director of the Global Village Investment Club [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]
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