Cost to Go
Public.
The costs to go public via
initial public offering (IPO) or Direct Public Offering (DPO)
varies substantially with the type of company, size and
complexity.
We have highlighted the major cost elements to provide a
basic understanding.
1. The accounting fees:
The financial audits can cost
from as little as $2,500 for a complete start-up to $35,000
for a fairly simple business that is generating a few
million in sales, to hundreds of thousands of dollars for
larger and more complex businesses.
2. The legal fees:
The legal fees can cost from
as little as $25,000 for a complete start-up to $45,000 for
a fairly simple business that is generating a few million in
sales, to $150,000+ for larger and more complex businesses.
3. The miscellaneous fees:
The miscellaneous fees
include various items that are required to be paid for as
part of the going public process. Generally, these range
from $7,000 on the low end to $15,000 on the high end.
4. Professional advisor
fees:
Professional advisor fees are
generally structured as part cash and part equity. These
fees vary based on the size, scope and complexity of the
business going public.