Published by Reuters
New laws and regulations aimed at stemming the tide of corporate fraud will have a lasting impact on mergers and acquisitions. And while the short-term impact is slowing the already glacial pace of merger activity, in the long run, the new rules will help deals get done, experts say.
In late July, President George W. Bush signed the Sarbanes-Oxley act into law. Called the most sweeping reform of U.S. securities laws since the 1930s, Sarbanes-Oxley is part of an all-fronts effort to restore faith in corporate leaders. The SEC has passed rules creating a new accounting oversight board and is beefing up its enforcement efforts.
And there is still more to come: the National Association of Securities Dealers (NASD) is considering new measures, SEC is currently considering new rules to oversee lawyers involved in securities work, and the Financial Accounting Standards Board (FASB) may also review some of its rules. Continue reading “New Corporate Governance Measures Lengthen Deal Cycle”