How much does it cost to go public? $300,000 to $500,000 by direct listing, often paid from the pre-listing raise. How much does a reverse merger cost? Typically $400,000 to $600,000 all-in, plus the shell's equity. What are the ongoing costs of being public? About $300,000 to $500,000 a year on the OTC market; $600,000 or more on Nasdaq. What does a going-public consultant charge? Preparation fees from about $10,000, then a monthly fee plus equity or options. How much should I raise before going public? Typically $500,000 to $2 million from about 50 people who know you.

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Going public: questions and answers

Short answers to the questions founders ask us most about taking a company public, each linked to a full page. Every answer is based on our work taking 17 companies public: 11 by direct listing, 4 by reverse merger and 2 by IPO.

Joel Arberman, Meraki Partners · Reviewed October 2026.

Can my company go public?

Can a small company go public? Yes. There is no minimum revenue; more than a dozen of our 17 listings were pre-revenue.
Should I take my company public? If you have a plan, the discipline to execute it and people who will invest.
Is my company ready to go public? Ready means a founder who executes, a plan, investors who know you and auditable records.
Going public vs selling to private equity With five to ten years of fight left, going public usually builds more value.
Going public vs raising venture capital For most founders, going public is the better fit and keeps control.

Can a company in my industry go public?

Software and SaaS Yes; we have taken two SaaS companies public.
Healthcare Yes; two healthcare companies, both by direct listing.
Real estate Yes; a real estate fund company and an agency.
Restaurants Yes; a restaurant group by direct listing.
Consumer products Yes; a consumer packaged goods company.
Financial services Yes; a mortgage company by direct listing.
Manufacturing and industrial Yes; two industrial companies by reverse merger.
Online businesses Yes; an online-business acquirer by IPO and an internet company.
Services businesses Yes; a PR firm and a business services company.

How does going public work?

What are the ways to take a company public? Direct listing, reverse merger or IPO.
Can you go public without an investment bank? Yes; 15 of our 17 listings used no bank.
What are the steps? Raise from your network, audit, file with the SEC, clear comments, get quoted.
How long does it take? About 6 months by reverse merger, 7 to 8 by IPO and 10 by direct listing.
What are the OTCQB requirements? SEC reporting, a $0.01 bid, 10% float and 50 shareholders.
OTC market or Canada? For most US companies, the OTC market.
What is a Form S-1? The SEC registration statement; first comments come in about 30 days.
What is Form 211? The market maker's FINRA filing to quote the stock.
Who do I need on my team? An adviser, securities lawyer, PCAOB auditor, transfer agent, market maker and independent directors.
When should I uplist to Nasdaq? Usually two or three years after listing, once traction interests institutions.

What does it cost?

How much does it cost to go public?$300,000 to $500,000 by direct listing, often paid from the pre-listing raise.
How much does a reverse merger cost? Typically $400,000 to $600,000 all-in, plus the shell's equity.
What are the ongoing costs of being public? About $300,000 to $500,000 a year on the OTC market; $600,000 or more on Nasdaq.
What does a going-public consultant charge? Preparation fees from about $10,000, then a monthly fee plus equity or options.
How much should I raise before going public? Typically $500,000 to $2 million from about 50 people who know you.

What happens to valuation, ownership and capital?

How is my company valued? By the price of the last private raise, not by a banker.
Who sets the share price? It starts at the last private placement price; then the market decides.
What is float, and how much do I need? At least 10% of shares in the hands of your network and others.
Will I keep control? Usually; a new company's founder typically owns 70% to 80% at listing.
How do public companies raise money after listing? Mostly private placements, then registered offerings with traction.
Who invests in micro-caps? First the founder's network, later family offices and institutions.
How do public companies make acquisitions? Mostly with cash raised from long-term investors, plus some stock or notes.

What changes for me as the founder?

Can I be removed as CEO? Technically yes, but rarely without a legal, ethical or moral breach.
When can I sell my shares? Under Rule 144 after a holding period, but we advise waiting years.
What personal liability do I have? Liability for misleading disclosure; D&O insurance and counsel protect you.
How do lock-ups work? We recommend 12 months, then gradual sales under Rule 144.
What are the biggest compliance mistakes? Undisclosed paid promotion and statements you don't truly believe.
What are the risks of being public? Cost, thin trading, disclosure and legal liability.

Want to talk it through?

Tell us where you are, and we’ll set up a first conversation about whether going public belongs in your plan and what it would take. If it isn’t right for you, we’ll say so.

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