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Reverse merger

A “reverse merger” is a transaction by which a private company becomes a public company by merging with a public company.

A reverse merger is an immediate method of going public. We recommend it to companies wishing to:

• Expand business operations
• Quickly obtain capital
• Shorten time to going public

With the guidance and support of our experienced team of accountants and attorney partners, a reverse merger can take as little as three weeks to complete.


HOW A REVERSE MERGER WORKS

The private company is generally a successful company that wishes to become public. The public company usually does not have many assets or liabilities. Shareholders who control the public company transfer their control to the private company. Once the private company controls the public company, the two can merge.

Downloads
 Self Registrations and
 Reverse Mergers [ English ]
 Self Registration and
 Reverse Mergers [ Chinese ]
 
 
Benefits
> Shorten time to going public
> Speed up access to capital
> Improve retention and attraction of top personnel, including talented executives and board of directors
 
> Move up to a higher exchange
 
> Improve financing options
 
> Go public even if you are start up, no asset or revenue requirements to go public on the OTC Bulletin Board
 
Private Company
( China )
  Public Shell Company
( USA )
  Public Company
( International )
owners, founders, investors shell investors
assets
  public trading in US
  assets
revenues
  access to capital revenues
operations
    operations
liabilities     liabilities
customers     customers
      public trading in US
      access to capital
 
Reverse Merger History
The New York Stock Exchange, Berkshire Hathaway, Turner Broadcasting, Texas Instruments, Waste Management, Radio Shack and Blockbuster Video are well known companies that completed a reverse merger in order to become public companies.
     

The New York Stock Exchange completed a reverse merger to become a public company in 2007. Turner Broadcasting completed a reverse merger in 1970. Reverse mergers are not a new phenomenon but they are not as well known as the traditional initial public offering.  However, a reverse merger can be a more effective way to become a public company as opposed to an Initial Public Offering.

 
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