Reading the MapInfo SEC filing of a recommendation by one of its major investors for the company to start putting some serious effort into seeking a buyer is rather illuminating.
This particular individual hints at the high cost of regulatory compliance by public firms in the current post-Enron environment, and what a large cost burden, percentage - wise, such an effort is for a small cap stock such as local darling MapInfo.
It always cost a boatload of money to go public; now it takes another boatload to STAY public.
Given this reality, the gentleman goes on to suggest that such a cost would be better absorbed within the financials of an industry giant such as Oracle or IBM, among others -- all of whom would make legitimate suitors.
With such a roadblock being put up in front of successful middle-stage companies looking to get to a new level of financing, the idea of "going public" does not have the appeal it traditionally has enjoyed, especially in the high tech world. At least not via US markets, as evidenced by the sudden emergence of former bit players such as the London and Toronto exchanges in serving these opportunities.
More about this later; on the portal ...
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