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Price Tag Shock: the High Cost of Going Public

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November 1, 2012

The cost of becoming a public company can be long and expensive, with a price tag for a US IPO of  greater than USD 1 million, according to a survey  of CFOs conducted by PwC’s (see above chart). The survey indicated that CFOs of US firms that have gone public in the past several years said they were more likely to be surprised by the costs of going public than the costs of being public.

 

Furthermore, the survey showed that 23% of CFOs said that the costs of taking their firm public had “exceeded their expectations by a significant amount”. A much smaller percentage, 13% of the participating CFOs, said that the costs of being public were significantly more than they had anticipated it to be before the IPO.

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