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The True Costs Of Going Public

By Seeking Alpha May 08, 2026 Neutral
The True Costs Of Going Public
One of the commonly stated reasons why companies stay private is the costs (and legal risks) of being public. One of those costs is preparing quarterly SEC reports. But there are also costs of preparing for and going public. Underwriting dominates the total costs of going public. It also scales with the size of the IPO.
One of the commonly stated reasons why companies stay private is the costs (and legal risks) of being public. One of those costs is preparing quarterly SEC reports. But there are also costs of preparing for and going public. Underwriting dominates the total costs of going public. It also scales with the size of the IPO.