Originally Posted by Icarus
Most naysayers complain about initial compliance and ongoing costs. Sarbanes-Oxley compliance is not that much more expensive but it has certainly generated a lot of backlash. I guess it has hurt smaller companies trying to get listed in the US since so many are going to Toronto and London for that. Maybe he means the underwriting fees.
Agree - costs could be heavy for micro-caps but don't move the needle for a large company like J Crew.
Maybe he did mean the fees...
That said, on a more fundamental basis, public investors require lower returns than private equity ones. So on a pure CAPM basis, the cost of equity of a public company is lower than that of a PE owned one.