Reverse Merger
A reverse merger (also known as a reverse takeover or reverse IPO) is a way for private companies to go public, typically through a simpler, shorter, and less expensive process. A conventional initial public offering (IPO) is more complicated and expensive, as private companies hire an investment bank to underwrite and issue shares of the soon-to-be public company. Aside from filing the regulatory paperwork – and helping authorities review the deal – the bank also helps to establish interest in the stock and provide advice on appropriate initial pricing. The traditional IPO necessarily combines the go-public process with the capital raising function. We will go over how a reverse merger separates these two functions, making it an attractive strategic option for managers and investors of private companies.
In a reverse merger, investors of the private company acquire a majority of the shares of the public shell company, which is then merged with the purchasing entity. Investment banks and financial institutions typically use shell companies as vehicles to complete these deals. These relatively simple shell companies can be registered with the SEC on the front end (prior to the deal), making the registration process relatively straightforward and less expensive. To consummate the deal, the private company exchanges shares with the public shell and the shell company, transforming the company being acquired into a public company.
If you like to take the fast lane to get public, contact us for further information. We always have Public Listed Companies in stock or will find the right company for your needs.
Shell Companies
Even if you need a private or public company right away to bring your business to the next level, we always have private and public companies in stock.
The takeover process can be done quickly so that you can trade with your new company within days.
We will assist you with the whole takeover process, fulfilling all your needs and requirements.
Our portfolio of Shell companies
Private Companies
- US Corporation
- Canada Inc.
- UK Limited
- Swiss AG & GmbH
Public Companies
- Canadian Stock Exchange / also available with Frankfurt Dual Listing
- OTC Pink Sheets
- OTCBB / QB
- Euronext Paris
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