Financial Checklist: All the Costs to Prepare for Before Going Public
The costs to prepare for an IPO include underwriting, legal, accounting, regulatory filings, listing fees, marketing, investor relations, compliance upgrades, and ongoing public company expenses—adding up to millions before and after your listing. Preparing for an IPO requires a precise financial checklist. You need to anticipate both upfront and recurring costs to avoid draining your capital. This guide details each expense category, shows how they affect your net proceeds, and explains how to budget effectively for life as a public company. What are the major upfront fees when going public? Your biggest line item will almost always be underwriting fees. Banks typically charge 4%–7% of gross proceeds. In a $200 million raise, you can expect $8–14 million to go straight to underwriters. Legal and accounting costs run close behind. You’ll need external counsel to draft your registration statement, review disclosures, and manage regulatory filings. Accounting firms must complete multiple...