This article is from the Investing Articles: Public Offerings: IPO and DPO series.
Depending on the knowledge and patience of the company's management, a DPO can be prepared and registered for a few thousand dollars if management can do most of the work itself. Accounting charges are usually the biggest factor in the cost of a SCOR offering. Most states require offerings of more than $500,000 to submit audited financials. Offers of less than $500,000 usually can submit reviewed financials. The accountant doing the financials has only to be an independent CPA.
If management is unwilling or unable to create the offering documents itself, costs go up appreciably. However, most states will not allow a company to spend more than between 15 and 20 percent of what it hopes to raise on raising the money. Most of the do-it-yourself offerings we have seen have cost between $7,300 and $39,000 including accountants, lawyers, printing, postage, phone calls, seminars and advertising. Some of those using packagers have cost more than $100,000.