Are private equity owners subject to SOX 2047

  • This is a rather vague question, because I lack detail at the moment. I work for a large organisation which falls into SOX scope. We are in the process of being taken over by a private equity consortium.
    Is the fact that they are labelled as ‘private equity’ mean that we are likely to no longer fall into SOX scope, either directly or as a part of the private equity group?
    I imagine that if my present company shares remain listed in the US, SOX will be in force, but if they are all compulsorily acquired by the parent company and delisted is there likely to be a need for us to comply with SOX?
    Thanks in advance.

  • Hi and welcome to the forums 🙂
    Yes, I believe what you’ve stated is accurate in that SOX applies to public companies listed in the USA. If your firm goes completely private, then it would not be subject to formal SOX compliancy controls. This should most likely be affirmed officially by the SEC, audit, or others know might know more specifically how your company will be recharted from a capitalization standpoint.
    Please copy to browser and add www companies must need SOX guidelines
    Please copy to browser, no www required

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