The cost associated with taking your company public increase by approximately six percent per year. As long as the present Bull Market persists, these costs will continue to rise. There are ways to reduce these costs. Relatively few companies seek practical advice about the equity process. They rely on their attorneys, auditors and underwriters for help. This practice contributes to the fifty- percent failure rate among companies seeking to do an IPO. Taking a company public in the States is a costly project. You can cut your costs by using alternatives to doing an IPO. But, the costs remain high.

Seek to go public based upon flat fees, not hourly rates. This limits your risk to the agreed upon fees. Find someone who can package the entire registration and listing service for you. It’s always cheaper to buy the complete service rather than the individual parts. The supplier is taking several companies public and gets better prices from business professionals for their services.

It’s less costly for a non-American company to offer and initial public offering in the States than for any U. S. Domestic Company to become a U.S. public company in America. The money savings relate to lower levels of legal responsibility for the filing attorney doing a 20F filing rather than an SB2 filing. The non-American company can use an auditor and an audit method that is accepted in their local country. This saves money over paying an Accounting Firm to do a GAAP audit.

There are other savings for non-American companies trading in the United States. They include the fact that the SEC does not require quarterly filings, nor is an annual shareholders report or meeting. I believe that clear, concise communications with shareholders is vital in order to meet business needs. I believe that both positive and negative information needs to be shared in a timely manner.