Nevertheless, there are many ways that a private business can employ to become a publicly traded company and raise capital. The most common is the Initial Public Offering (IPO). An IPO is when a once closely held private company becomes a public company and makes an offer to sell its stock to the investing public.
Archive for the ‘Reverse Merger’ Category
Reverse Mergers and the Securities and Exchange Commission
On June - 5 - 2010
A reverse merger is considered a worthy goal by many private company chief executives, and they envision the day when their up-and-coming young company can join the ranks of the publicly traded businesses of the stock markets.
Going Public – Tricks and Tips
On June - 4 - 2010
This is the last a short series of article on listing your company. Today I want to explain some of the various ways you can list and how you can use these to raise money for your business. First thing I will say is that you need professional advice when your are doing a listing, there is no way around it and yes, I know, it sucks. But unless you fancy studying corporate finance for a few years and investing your time in learning how its done, then suck it up and hire a professional. Read the rest of this entry »
What is a Reverse Merger?
On January - 31 - 2010
A ‘Reverse Merger’ in the simplest terms, is where a private company buys a public company through the issue of private shares. The result of this transaction is that the private company gains control of the board of directors and the majority of the ownership shares in the public entity. Read the rest of this entry »
Advantages of Reverse Merger
On January - 30 - 2010
Enhanced Valuation: Generally, public companies enjoy a higher valuation than a private company. Among the reasons for this is the comparative ease of trading the shares.
Ease of Raising Capital: Raising capital can be easier within a public company. Among the reasons for this are liquidity, ease of trading and a demonstrable market value via the share price, as well as enhanced financial reporting. Read the rest of this entry »
Preparing For Reverse Merger
On January - 29 - 2010
Locate a Suitable Public Shell: Public shells are available by simply searching on the Internet, however, our group has access to suitable shells with a clean history. This avoids many pitfalls going forward. Read the rest of this entry »

