Reverse Merger. The best method to going
public!
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
Less dilution
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:
Turner Broadcasting
Waste Management
Occidental Petroleum
Blockbuster Entertainment
Tandy Corporation
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?