Who can go public?

Theoretically, anybody can. But in reality, this avenue of financing is available only for companies with consistently good financial performance over a period of years.

Further, many experts say that an IPO should have the potential of raising at least $50 million. If you can’t raise at least $30 million, it could be a good idea to wait a while and let your company grow a little more before you go public.

There are many upfront costs to take a company public, including legal, accounting, and printing costs. Here are some “ballpark” figures:

• Printing                                          $75,000 to $150,000
• Legal counsel                                  $150,000 and up
• Accounting                                     $100,000
• Investment banker/underwriter           $500,000

Before going public, you will need to look carefully at the company’s income. It is important to make sure your level of sales justifies the cost of going public, which can easily run as high as $1 million or more.