The Reverse Merger allows a private company to go public in a much shorter time period—sometimes only weeks—and is much less expensive and complicated.Private companies with growth potential take this step to raise capital through buying an already listed shell company, which still has an organizational structure, but no longer has an operational business or assets. The shell company is then merged with the private company, with its shareholders receiving the controlling portion of the public company’s shares and the same controlling position on its board.
A Reverse Merger is usually chosen for its time saving simplicity and the way it allows the purchasing company to by-pass the rigors of an IPO. Hiring a Reverse Merger consulting firm from the very beginning is the best thing you can do for your company. The firm will assign you a reverse merger consultant that will work with you all the way to completion. The reverse merger consultant is a trained specialist who can do the research into the shell to find out about the pitfalls you are about to inherit and help you devise a plan to combat the negative effects it could have on you, your business and your shareholders. There are some of the benefits for going public using the reverse merger route such as raise capital, cost factor, acquisitions,time factor,incentives, legalities and liabilities,dilution.The main benefit of reverse merger is that the owners of the buying company have greater control over this process. These benefits can be fully realized by hiring a trained reverse merger consulting firm. They are experienced in determining what documents need to be filed and when. They will be with you through the entire process from start to finish and are proactive in the event some unexpected problems arise.
To find out how you can fast-track your company's growth by "Going Public" on the Frankfurt Stock Exchange, come visit on Reverse Merger consulting firm
