Stephen Gaines, Head of KPMG Corporate Finance (US) and David Simpson, Partner, KPMG Corporate Finance (UK) quoted in Factset Mergerstat's Flashwire Weekly

November 13, 2006

In the November 13, 2006 edition of Factset Mergerstat's Flashwire Weekly, KPMG Corporate Finance had an opportunity to contribute to Mike Angell's article, AIM Woos International Companies with Minor Regulations and Impressive Profits.  Angell discusses how Sarbanes Oxley may be a barrier for smaller companies considering going public in the U.S. market or opting to go public on the Alternative Investment Market (AIM), the London Stock Exchange's junior market.  AIM has been focusing on U.S. venture-backed companies, and these companies are definitely showing some interest in the options AIM may have to offer.

Stephen Gaines, Head of KPMG Corporate Finance (U.S.) and David Simpson, Partner, KPMG Corporate Finance (UK), were quoted with respect to their views whether Sarbanes Oxley is the main reason for influencing U.S. companies to list with AIM.

According to Gaines, Sarbanes-Oxley is “not a red herring; it’s real, but we live in a competitive global market place where companies have a choice as to where they raise capital.”  Gaines adds, "...companies of all sizes have greater opportunity to skirt all disclosure requirements through a private equity buyout, which has only abetted the decline in IPOs. Private equity is presenting a very competitive alternative to going or being public."

David Simpson adds, "while stiffer U.S. regulations may play some role in the decision to list overseas, proximity also plays an important role as companies want to be near analysts and investors. "For some companies, Simpson says, “it’s physically closer to get to London than the U.S.”

About KPMG Corporate Finance LLC

KPMG Corporate Finance LLC is a leading financial adviser serving domestic and international clients. KPMG Corporate Finance offers a full suite of investment banking and advisory services and the experience and depth of knowledge in global M&A and project finance to advise clients on mergers and acquisitions, sales and divestitures, buy-outs, financings, restructurings, fairness opinions, infrastructure project finance and other advisory initiatives. Operating in 52 countries, KPMG's Corporate Finance practice comprises more than 1,600 professionals who are able to meet the needs of KPMG's firms’ clients across the globe. In 2005, KPMG's Corporate Finance practice was ranked the number one financial adviser for completing the highest number of transactions globally (429 deals totaling US$40.3 billion), according to Thomson Financial’s global M&A league tables, and in 2006 it was named global financial advisor of the year by Infrastructure Journal.