Reverse Mergers

A reverse merger is a process whereby a private company can become a public company by acquiring a controlling interest in a public shell company. A reverse merger is an efficient strategy used by some private companies to go public, particularly where a traditional IPO is not an option. This method of going public does not require filing a registration statement with the SEC but does require other security filings, including an initial super 8-K and subsequent 10-Q’s and 10-K’s. While a reverse merger may cut down on the potential SEC filings that a company must make to become public, the acquiring company will need to conduct thorough due diligence in order to make sure the shell company is not tainted and to put the necessary clauses in merger documents to assure that stock prices do not decrease significantly. We are experienced in handling reverse mergers and can explain the possible risks and rewards of doing a reverse merger and whether it is right for your company.