Reverse mergers cost a fraction of an IPO. Most mergers can be completed for under $1 million. In comparison, an IPO can cost several million dollars and that excludes underwriting commissions and costs. The biggest cost of the reverse merger is the cost of the shell itself. Today’s shells can go from as little as $400K to as much as $1 million. This number does not include any equity that the previous shell owner may retain. IPO’s are much more expensive with the average cost coming in at $2.5 million. There are many pricing variables with IPO’s that do not occur with the reverse merger which I will cover in my forthcoming Blogs.