Changes in the regulatory landscape are having a profound impact on companies seeking to access the capital markets.  In this exclusive LegalMindsTV interview, Steven Khadavi, Co-Chair of the Capital Markets practice Group at Dorsey & Whitney LLP, discusses some of the challenges these companies face.

According to Khadavi, “companies considering accessing the capital markets need to carefully weight the costs and benefits of these transactions.  In addition to being an expensive and time consuming process, it can create a significant diversion of management’s time, as well as add significant burdens in terms of disclosures and regulatory compliance.”

“Accessing the capital markets is a long process,’ says Khadavi.  The lead time to commencing a transaction is probably a year or so and in that time you need to “start thinking like a public company.”  This includes engaging PCAOB certified auditors and an accounting firm that’s familiar with SEC reporting and be able to go through the capital markets process.  Companies also need to consider the impact of the Sarbanes-Oxley Act, which entails large upfront costs for testing internal controls and procedures – particularly the first time around.

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View and download a PDF transcript of the full interview here.

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ATTORNEY INFORMATION

Steven Khadavi
Partner, Dorsey & Whitney LLP

Steven Khadavi is a partner in Dorsey’s Corporate group and Co-Chair of the firm’s Capital Markets practice group. He has extensive experience in corporate finance and securities law, as well as mergers and acquisitions.

Mr. Khadavi has represented underwriters and issuers in public and private debt and equity offerings, debt tender offers, consent solicitations, exchange offers and public and private acquisitions. He has represented clients in the United States and abroad in various sectors, including telecommunications, healthcare and consumer products. He also advises clients with respect to corporate governance and Sarbanes-Oxley matters.

FIRM INFORMATION

Clients have relied on Dorsey since 1912 as a valued business partner. With more than 650 lawyers in 19 locations in the United States, Canada, Europe and Asia-Pacific region, Dorsey provides an integrated, proactive approach to its clients’ legal and business needs. Dorsey represents a number of the world’s most successful Fortune 500 companies from a variety of disciplines, including leaders in the financial services, investment banking, life sciences, securities, technology and energy sectors, as well as nonprofit and government entities.

For additional information, visit: http://www.dorsey.com