Last week, I commented on the IPO On-Ramp provisions of the JOBS Act. Generally, my thoughts are that the IPO On-Ramp has been a modest success. That said, there are those that disagree. Here’s a post by Zachary Seward presenting the other side of the story: The JOBS Act turns one, and let’s be honest, it’s a failure.
I’m not saying I agree with his overall conclusion or every point, but he does make some good points, such as the fact that Title V of the JOBS Act, which allows private companies to delay going public, is causing a reduction in IPOs which may have surpassed any benefits of the IPO On-Ramp. Mr. Seward’s view largely stems from the fact that he believes the JOBS Act went too far in deregulating, rather than the view that the JOBS Act has been a disappointment because it hasn’t been implemented quickly enough.
As I discussed in my first post in this series, we’ll have a much clearer view of the effect of the JOBS Act years from now than we will now. But it doesn’t hurt to see what one year’s worth of hindsight can tell us.
© 2013 Alexander J. Davie — This article is for general information only. The information presented should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.