340 ◾ The Guide to Entrepreneurship: How to Create Wealth for Your Company
15.4.2 Disadvantages
There are several well-known counterbalancing pressures against going
public. Among the major disadvantages are:
◾ High initial cost of going public
− Underwriters’ expenses
− Road show expenses
− Legal and accounting expenses
◾ High cost of compliance
− Audit expenses
− Burdensome regulations (Sarbanes-Oxley)
− Periodic reporting requirements (10Qs, 10Ks).
− Annual shareholder meetings
◾ Shareholder pressures
− Increased quarterly earnings
− Unrelenting pressure to increase quarterly share price
◾ Distant and unsympathetic shareholders
15.4.3 The Going Public Process
At rst, management should seek the advice of attorneys who understand
the comp ...