The Securities and Exchange Commission estimates the regulatory compliance costs for going public is $2.5 million for an initial IPO and $1.5 million a year afterwards. That deadweight cost is likely a major factor in the decline of IPOs over the past 10 years.
The Securities and Exchange Commission estimates the regulatory compliance costs for going public is $2.5 million for an initial IPO and $1.5 million a year afterwards. That deadweight cost is likely a major factor in the decline of IPOs over the past 10 years.