A Reverse Merger is when a private company reverse mergers into a public company. Basically, the private company is taking over the public company for the purpose of using its public status. That is why it is called a Reverse Merger. If the public company was a successful business and was buying the private company, it would not be called a reverse merger, just a merger, and the surviving entity or larger operational entity would be the public company.
We have advised, funded and participated in numerous reverse merger transactions, as well as many other types of funding transactions, over the past 15 years. The management team of Reverse Merger Funding has been involved in well over $100,000,000 of funding transactions. Due to the number of requests we receive we ask that you use this form to contact us. Submit Your Request. We will respond promptly, usually within 2 or 3 days.Each year a significant number of public companies reverse merge into a public company. The most likely reason for such a move is to access the capital markets and raise capital for growth and acquisitions. The public “Shell” company usually has significant value because of the fact that it is public, has a stock symbol, has a shareholder base and because it can more easily raise capital by issuing stock that is registered or can be registered with the United States Securities and Exchange Commission (SEC).
A public company has much more flexibility when it comes to
raising capital than a private company.
A public company’s common stock can basically be viewed as another asset
it has for raising capital. Once it has a stock symbol and decent trading
volume it stands a very good chance of raising capital for growth, mergers or
acquisitions. Many investors such as Hedge Funds actively contact small public
companies to help them with their capital needs.
