Reverse Merger. The best method to going
The reverse merger is the best method of going public where:
Certainty of completion is key
Because no investment banking firm is involved as underwriter, you retain control of your company's destiny.
Raising cash is a secondary priority
Officially, raising cash is not part of the transaction
Other benefits of going public through a reverse merger, as opposed to an IPO, may include:
Significantly lower cost
Significantly less time to complete
Less attention is needed from top management
Once public, your ability to raise capital by private placement or secondary offering, at terms generally more desirable than an IPO, will be based upon your company's financial performance as well as the credibility of your projections.
High profile companies of today that used a reverse merger to go public include:
The threshold of viability for a back door public company seems to have more to do with strong management than any magic formula regarding present earnings. The ability to grow, solve problems and exploit opportunity without losing faith, yields success.
Will you be next?
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