Understand the True Cost of Going Public
Before you take your company public, make sure you understand what you’ll face. The Planet MicroCap Showcase Vegas 2025 hosted the “The True Costs of Being Public” panel discussion. NSI Insurance Group’s Jason Bishara joined Neil Levine from CBIZ, Eric Flesche from Glendale Securities, Inc., Erik Nelson of Coral Capital Advisors, LLC, and moderator Steven Skolnick of Lowenstein Sandler LLP to discuss the often-unexpected cost of going public.
PANEL: “The True Costs of Being Public” | Planet MicroCap Showcase: VEGAS 2025
Going public is a big step for companies, and it’s not one that should be taken lightly. The process will require a significant investment in both time and money, and business leaders often underestimate the total costs. At the same time, it’s important to be thoroughly prepared and to select the right service providers to ensure that the process goes smoothly. While certain moves can help companies save money – for example, purchasing D&O as a private company – other strategies may not result in savings, and putting off necessary services could lead to unnecessary problems.
Key Takeaways:
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Going public is incredibly expensive, and costs have surged in recent years. Costs include fees for the transfer agent, accountants, lawyers, advisers, and insurance.
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In the past, companies may have leveraged reserve mergers to save money, but these days, there’s not much of a cost difference.
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Selecting the right professionals from the beginning is important, as switching auditors and other service providers can lead to complications and increased scrutiny.
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As soon as companies begin raising outside capital, they should enlist the assistance of a transfer agent to avoid mistakes.
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It’s more cost effective to purchase D&O insurance early in the process and structure it as a private entity.
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When buying D&O insurance, pay particular attention to Excess Side A DIC coverage, the retroactive date and tail coverage.
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In addition to D&O, companies typically need EPLI, cyber, E&O and crime & fiduciary liability insurance to form a comprehensive executive risk management program.
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Rates have actually come down for management liability insurance recently.
Are you planning to take your company public? NSI Insurance Group can help you secure the right insurance to protect your company and your executives. Don’t wait until you’ve already gone public – it’s most cost effective to secure coverage pre-IPO. Contact us for a review of your insurance needs.
