Are you considering a reverse merger?

We don't facilitate reverse mergers into companies with potential bad actors, contingent liabilities and clean-up. We'd only entertain a reverse merger transaction if it is with a 'clean' public entity.

We prefer companies that are already profitable or have clear visibility that it will be profitable within twelve months. If your business is not profitable, you need to recognize that raising capital isn't easy and you'll need to lean on your personal and professional networks, and potentially digital advertising (which can get expensive).

Aside from our interest in companies in hot sectors (currently AI, robotics, Internet, software in general, etc.) we especially like "boring companies" that are acquiring profitable companies in their sector.

A senior member of your management team should have extensive experience dealing with investors, has public speaking experience and media relations knowledge, OR, your management team is willing to accept a recommendation to a senior management person whose sole role would be to meet investors and media on a full-time basis.

Your management team should understand that being publicly traded requires spending money to foster relationships with investors and media on an ongoing basis. In part, this is to develop liquidity for the publicly traded stock, which is important to access future funding, for using stock to pay for acquisitions and for attracting and retaining key talent with stock options.

What does it cost?

You can generally start the process for $25,000 or less. If you don't have $25,000 or access to it, this process is definitely not for you. The rest of the cost can be raised in private placements from investors in your personal and professional networks, or through digital advertising. 

Typical total cash cost is about $400k, inclusive of accounting, audit, legal, exchange, consulting, and other fees. However, the estimated cost will vary with the size and complexity of your business. If someone tells you it costs substantially less, they aren't being truthful or don't know what they're talking about. In addition to the cash cost, there's an equity cost that is determined on a case by case basis.

We'd love to chat. A reverse merger can better position your business for significant long-term success and provide you with a valuable tool to create significant wealth for you and your shareholders.

Joel Arberman has been a partner of a 700-person investment banking firm, institutionally ranked sell-side analyst, buy-side analyst for two multi-billion-dollar asset management firms and has independently taken seventeen companies public (with several more in process).

Joel has facilitated IPOs, direct listings and reverse mergers in the United States & Canada that helped entrepreneurs scale their business, acquire profitable companies, and raise debt & equity capital, while creating billions of dollars in shareholder value.