April 12, 2005
So, You Thought You Were Immune? Only publicly traded companies have to worry about being in compliance with Sarbanes-Oxley, right? Not necessarily. Turns out that the act may have implications for private firms, as well. At the InformationWeek Spring conference in Amelia Island, Fla., one attendee who works for a family-owned business explained why: It's the banks. They want to see even private companies master the ins and outs of Sarbox compliance or be prepared to take a hit on their financing terms, he says. The million dollars or so that his company expects to spend on Sarbox compliance isn't chump change by any means, but it's worth it when measured against potentially less-favorable terms on business loans. It seems nobody's safe from what another attendee at the conference called "the biggest thing the government has ever done for the consulting industry." While at least one business-technology executive whose company has achieved Sarbox compliance conceded that he could appreciate the visibility the Sarbox process brings to the marketplace, his company hasn't yet seen any real ROI from the few million spent on getting compliant. Hopefully, that will change in the not-too-distant future. But it seems that not everyone's holding their breath. Posted by Jennifer Zaino
at April 12, 2005 02:41 PM
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