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Reverse Mergers




A reverse merger is a simplified, fast-track method by which a private company can become a public company. The private company "reverse merges" into the already public company, which now becomes an entirely new operating entity and generally changes name to reflect the newly merged company's business.




Going public (Via Reverse Merger) is attractive to companies due to the fact that after going public, the company can use its stock as currency to finance acquisitions and attract quality management.  It is easier to raise capital as investors now have a clearly defined exit strategy and insiders can create significant wealth.




Many people do not realize there are numerous other ways for a private company to become publicly traded outside of the IPO. The reverse merger is an alternative to the traditional IPO (Initial Public Offering) as a method for going public faster.




The reverse merger method for going public is more common than many people realize. Most of the newly listed public companies have gone public through a reverse merger.  This percentage has dramatically increased recently because of Wall Street Investment Banking firm’s lack of appetite for IPO’s.




In a reverse merger, the original public company, commonly known as a "shell company," has value because of its publicly traded status. The shell company is generally recapitalized and issues shares to acquire the private company, giving shareholders and management of the private company majority control of the newly formed public company.




The reverse takeover method for going public has numerous benefits for the private company when compared to the traditional IPO: Initial costs are much lower, excessive investment banking fees are avoided, and the time frame for becoming public is considerably shorter.




There are many examples of highly successful companies which have yielded millions in profits for investors that have gone public through the reverse merger. Many of these companies deserve exposure to investors. Initial valuations can be reasonable, providing excellent opportunities for individual investors to accumulate positions ahead of Wall Street institutional money.




• BPZ Resources Inc
• Occidental Petroleum
• Turner Broadcasting
New York Stock Exchange
• Rare Medium
• Acclaim Entertainment
• Blockbuster Entertainment 




For more details, download a copy of our CAP brochure.




Company seeking finance should submit the following details :







(1) Micro Summary For Private Company   Download


(2) Pre-Call Questions   Download

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