Why Companies Go Private The panelists noted the following factors that drive a public company to go private: ?? Impact of increasing costs related to the Sarbanes-Oxley Act (SOX), although the panelists agreed that this was not the sole impetus for going private as many hedge funds and private equity firms still require the companies that they purchase to comply with SOX ?? The belief by the chief executive officer and/or the board of the public company that the company’s stock is undervalued in the public market ?? Decreased coverage of middle market public companies by analysts and a public company’s inability to convey its message to the public ?? Reluctance by named executive officers and board of directors to comply with new and extremely personal compensation disclosure requirements of the SEC ?? Increasing market acceptance of going private transactions as commonplace — fueling the perception in the boardroom that going private is a viable strategic alternative