Preparation for a Reverse Merger or Public Shell Merger

Locate a Suitable Public Shell:  Public shells can often be found by consulting with securities law firms or CPA - Audit firms that deal with public companies.

It is important to start with a clean shell: Due diligence on the public shell cannot be over emphasized, advice from your securities counsel, auditors, and a financial consultant should be utilized.

Comprehensive Business Plan: Potential investors, public shareholders, auditors, securities counsel, brokers and market makers will want to see a well-documented business plan.

Strong Management Team:  Public investors demand strong management teams.

Convincing Marketing Plan:  Public companies need the ability to show good sales and earnings growth.

Product or Service:  Public companies should be able to develop strong or dominant position in their business segment..

Financial Audits:  SEC qualified audited financial statements for your last two fiscal years.

Experienced Securities Counsel:  Your attorney must be qualified to deal with regulatory compliance, and the ongoing reporting requirements of all public companies.

Have Public Company Experience: Your company should have at least one person in senior management that has significant public company experience. Financing consultants, such as Go Public Institute, can often assist management in the complex issues of being a public company and maintaining a good relationship with the financial community. In fact, many actually have a couple of shell corporations and, upon request, can manufacture a clean public shell. A made-to-order shell without the baggage of a business failure in its background can sometimes be the way to go, but there's often a cost involved. You will most likely end up with the financing consultants as minority shareholders in the new company, holding between 2 percent and 5 percent. However, in almost any reverse merger transaction, the principals of the shell company keep a small equity position in the company going forward. Therefore, this surrender of equity is simply a cost of doing business.

Devise your financing strategy: A reverse merger is an indirect route to raising capital. Entrepreneurs must first consider how additional capital will be raised after the deal is done. An experienced financial consultant, like Go Public Institute, can be very beneficial in this area.

More Information on going public and reverse mergers

For more information on going public through a reverse merger and details on public shells currently available, please contact Go Public Institute at 713-301-8921

Go Public Disclaimer – Go Public Institute performs no underwriting function and acts solely on behalf of a client company in providing in-house financial advisory services. Although the consulting services of Go Public Institute may include general advice and consultation regarding general legal topics relating to the consulting services to be rendered, particularly with respect to areas of financial expertise of Go Public Institute, the services rendered by Go Public Institute do not include the rendition of professional legal services or any specific legal service, advice or consultation by any affiliate of Go Public Institute. Go Public Institute is not a Broker Dealer or registered with FINRA or the SEC. Go Public Institute will not accept broker fees or compensation for raising capital.


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