Anonymous asked in Business & FinanceOther - Business & Finance · 1 decade ago

why is venture financing and buy outs becomming more and more popular?

is this consolidation a sign that america is becomming more and more a series of monopolies? WHY?

1 Answer

  • 1 decade ago
    Favorite Answer

    Leveraged buyouts most often take a public company private. This has the advantage of not having to make public many of the accounting and other internal records which is required of a public company. After the enforcement of Sarbanes-Oxley (SOX) requirements, companies have spent millions on implementing compliance, if they were private they would not have to invest so much on SOX.

    America is a business friendly country and provides a competitive business playground but the winners try to become monopolies, this is true all over the world. This is why it is important to encourage competition. So while consolidation is taking place, new companies are being created as well.

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