Page 133 - Initial Public Offering - An Introduction to IPO on Wall Street

Act”, about 60% of the newly public companies surveyed spend more than $1 million on
15
recurring expenses per year as a result of being public . This section will discuss what is
leading to these increased costs.

New Staffing Expenses

In addition to the cost of reforming the creation and organization of new divisions, you will
bear the recurring cost of recruiting, educating, retaining, and providing incentives to several
new employees.

While you will experience growth in all divisions, you are likely to experience the most growth
in divisions that deal specifically with accounts, finances, and legalities. The following diagram
is included in the PwC report, outlining the areas in a business that most often involves an
increase in employees due to an IPO.

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