Take Your Company Public by Merger

What is a reverse merger?

A private company uses a reverse merger transaction to take over a publicly traded company. At closing, the private company management. shareholders and directors take control. It's a relatively fast and easy way to become publicly listed, although it is not our preferred way for companies to go public.

Our process helps entrepreneurs take their company public, without the high cost and problems associated with reverse merger transactions. However, some circumstances make a reverse merger a useful way to complete acquisitions, recruit talent, raise capital and create significant wealth.

Which companies should consider a reverse merger?

A reverse merger might be a good option for companies that have an immediate opportunity to raise capital, complete acquisitions or recruit talent and can't wait 7+ months to complete an IPO or 10+ months to complete a direct listing.

Which companies qualify?

Any company can qualify to complete a reverse merger. However, the officers, directors and controlling shareholders of the public company would need to find your business, team and proposed transaction to be more attractive than other private companies they are speaking to. As a result, many entrepreneurs decide to use a direct listing as the method to go public.

Which stock exchange would a company trade on?

When completing a reverse merger, the private company ends up trading on the exchange that the public company is already listed on. Popular exchanges for reverse merger transactions include the OTC QB and OTC Pink in the United States and the TSX-V, NEO and CSE in Canada. While it is possible to complete a reverse merger onto the NYSE or NASDAQ, it does not happen frequently.

Who raises investment capital?

Since there's no investment banking firm involved in the transaction, all investment capital is raised by officers and directors of the company going public. Usually, capital is raised before, after or in conjunction with a reverse merger transaction closing. We can help clients comply with regulations that allow them to raise capital privately from personal relationships (friends, family & business network) or depending on regulation relied upon, through a wide range of online and offline advertising.

What does a reverse merger really cost?

Completing a reverse merger requires acquiring control of the public entity. Sometimes you can buy control for cash and other times the public company will enter a transaction for retained equity. In addition to the cost of control, you will need an advisor, accountant, auditor, lawyers, and others. The total cost of acquiring control of a public entity and the subsequent cost of corporate compliance with SEC rules and regulations will generally exceed $450,000 and can be significantly more depending on the size and complexity of the companies and transaction.

Why engage us?

It's important to have a very experienced advisor to navigate through all the steps required for a private company to complete a reverse merger. We help clients evaluate public companies to merge into, help to structure terms and review transaction documents. While a good securities attorney always needs part of the process to handle legal issues, our role is as strategic advisor to management. We're on your side. Our team has facilitated public listings that helped CEOs create more than $5 billion in shareholder value.

About Us: 

Our founder was a partner of a large investment banking firm and recognized as a top-ranked technology analyst by institutional investors. He has founded four companies that went public, provided guidance to multibillion-dollar asset management firms and has completed over $100 million in acquisitions. He has more than twenty years of experience in helping entrepreneurs take their companies public to raise capital, recruit talent, complete acquisitions and create significant shareholder value. 

Reach out to learn more about our services. We're always happy to talk to smart people and are happy to answer any questions about the recommended path to go public, estimated costs, timeline and core strategies to create substantial wealth.