A reverse merger is the most common alternative to an initial public offering (IPO). Reverse mergers allow private companies to go public by acquiring a controlling interest in, and merging with, a publicly traded shell.
In a reverse merger transaction, private company shareholders exchange their shares of the private company for either new or existing shares of a publicly traded shell so that at the end of the transaction, the shareholders of the private company own a majority of the publicly traded shell and the private company has become a wholly owned subsidiary of the publicly traded shell. The pre-closing controlling shareholder(s) of the publicly traded shell either return their shares to the publicly traded shell for cancellation or transfer them to individuals or entities associated with the private company. At the closing, the private company has become publicly traded by acquiring a controlling interest in a publicly traded shell and the publicly traded shell assumes the operations of the private company.
We can provide you assistance with reverse mergers and publicly traded shells by: