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  • Actual for You - Going Public: The Four Categories of Cost

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    d) have their financial records been reviewed by an accounting firm?
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    The costs to go public via direct public offering varies substantially with the type of company, size and complexity. The four major costs include:

    1. The accounting fees:
    When a private company goes public, they must obtain financial audits. These audits are incorporated into a registration statement that is subsequently filed with the United States Securities and Exchange Commission.

    The cost of financial audits have a significant range. There are several factors that influence the cost of financial audits:
    a) are the corporate books and records organized?
    b) does the company have an internal ability to generate an income statement, balance sheet and statement of cash-flows?
    c) have their financial records been kept by a CPA?
    d) have their financial records been reviewed by an accounting firm?
    e) have their

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    fees:
    When a private company goes public, they must obtain financial audits. These audits are incorporated into a registration statement that is subsequently filed with the United States Securities and Exchange Commission.

    The cost of financial audits have a significant range. There are several factors that influence the cost of financial audits:
    a) are the corporate books and records organized?
    b) does the company have an internal ability to generate an income statement, balance sheet and statement of cash-flows?
    c) have their financial records been kept by a CPA?
    d) have their financial records been reviewed by an accounting firm?
    e) have thei

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    h the United States Securities and Exchange Commission.

    The cost of financial audits have a significant range. There are several factors that influence the cost of financial audits:
    a) are the corporate books and records organized?
    b) does the company have an internal ability to generate an income statement, balance sheet and statement of cash-flows?
    c) have their financial records been kept by a CPA?
    d) have their financial records been reviewed by an accounting firm?
    e) have thei

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    ancial audits:
    a) are the corporate books and records organized?
    b) does the company have an internal ability to generate an income statement, balance sheet and statement of cash-flows?
    c) have their financial records been kept by a CPA?
    d) have their financial records been reviewed by an accounting firm?
    e) have thei
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    tatement of cash-flows?
    c) have their financial records been kept by a CPA?
    d) have their financial records been reviewed by an accounting firm?
    e) have their financial records been audited in the past?

    The answers to these questions will largely determine the cost of financial audits. Other factors include the length of time a company has been in business and the industry it is in.

    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:
    When a private company goes public, there are a number of legal issues that must be handled. The primary document that is created is called the registration statement.

    The org

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