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Atricle Dump - What Is Reverse Merger, And Is It For Everyone? Part 1
What does every business want? Does every business want to increase sales, reduce taxes, and create a better cash flow? Or is that only what successful businesses want?I'll tell you what every business do want. CASH, CASH, CASH!!!! It doesn't matter if the business is doing well or struggling. They both have something in common. Each business wants or needs more money.By reading this article you will learn how to increase sales, reduces taxes, and create a better cash flow year after year.Increasing SalesIncreasing sales doesn’t have to be a hard task. If you understand the
(1). The cost of the shell: the price of corporate shells has skyrocketed over the last couple of years, due to increased SEC scrutiny and demand for shells by Chinese companies looking to go public and trade in the U.S.
The price of public shells today start at $500,000.00 and people are paying it. With all the other expenses the final cost of doing a Reverse Merger could be close to one million dollars.
<You have a unique advantage, an edge no one else has. When you put that unique advantage to work for you -- when you take the time to develop it as you would strengthen a muscle -- you get something that reduces perceived risk and triples your chances for success.That something is called Informed Confidence.In fact, research in progress by the SBA Office of Advocacy (http://www.sba.gov/advo/) shows that confidence is the number one success factor when starting any new venture. But confidence alone is not enough. You need the kind of confidence you get only by doing the footwork.<
In a reverse merger, an operating Private company merges with a public company that has little or no assets, nor known liabilities (the "shell"). A shell is what remains of a once public company that has ceased to operate, by going bankrupt or liquidation of assets. In some rare instances, the shell may have some amount of cash remaining for investment into the new enterprise. The public corporation is called a "shell" since all that exists of the original company is its corporate shell structure and shareholders. The private company owners obtain the majority of the shell corporation's stock (usually 90-95%) through a new issue of stock for the private enterprise or asset.
The public corporation will normally change its name to the private company's name and elect a new Board of Directors which will appoint the officers. The public corporation will usually have a base of shareholders sufficient to meet the 300 shareholders requirement for eventual admission to quotation on the NASDAQ Small Cap Market or American Stock Exchange (if the private company's financial condition substantiates other NASDAQ or AMEX requirements). The company must file a form S-4, this form is use to register securities in connection with Business combinations and exchange offers. although some shells have as few as 35-50 shareholders, and are currently listed (or can apply for listing) on the OTC Bulletin Board or the NQB Pink Sheets.
A Reverse Merger may be the quickest way to go public but is it the best?Lets look at a few drawbacks of using a Reverse merger to take your company public.
(1). The cost of the shell: the price of corporate shells has skyrocketed over the last couple of years, due to increased SEC scrutiny and demand for shells by Chinese companies looking to go public and trade in the U.S.
The price of public shells today start at $500,000.00 and people are paying it. With all the other expenses the final cost of doing a Reverse Merger could be close to one million dollars.
Many years ago I had a friend who was extremely intelligent, had a photographic memory, and finished university with top marks in business administration. He had all the credentials to get a great job.Sounds good for the most part, wouldn’t you say!! Maybe even a nice boy who you would want to marry your daughter!! Shortly after finishing school he landed a job working for the owner of this large company, whose business did millions a year in revenue.The person he worked for was old world, very little formal business education, and built a wonderful business from scratch. He was shrewd p
The public corporation will normally change its name to the private company's name and elect a new Board of Directors which will appoint the officers. The public corporation will usually have a base of shareholders sufficient to meet the 300 shareholders requirement for eventual admission to quotation on the NASDAQ Small Cap Market or American Stock Exchange (if the private company's financial condition substantiates other NASDAQ or AMEX requirements). The company must file a form S-4, this form is use to register securities in connection with Business combinations and exchange offers. although some shells have as few as 35-50 shareholders, and are currently listed (or can apply for listing) on the OTC Bulletin Board or the NQB Pink Sheets.
A Reverse Merger may be the quickest way to go public but is it the best?Lets look at a few drawbacks of using a Reverse merger to take your company public.
(1). The cost of the shell: the price of corporate shells has skyrocketed over the last couple of years, due to increased SEC scrutiny and demand for shells by Chinese companies looking to go public and trade in the U.S.
The price of public shells today start at $500,000.00 and people are paying it. With all the other expenses the final cost of doing a Reverse Merger could be close to one million dollars.
<If you're a medical billing company, your main point of operation is doing just that, sending out bills for services rendered to the various patients that you represent. And while this may seem like a simple decision to make, deciding what method of billing you're going to use is sometimes not as easy as some people would think. In this installment, we're going to discuss your various choices and what factors are involved in making your decision.First of all, one thing a company has to understand when it comes to billing is that it's not simply a matter of what method you use to send the bill
The public corporation will normally change its name to the private company's name and elect a new Board of Directors which will appoint the officers. The public corporation will usually have a base of shareholders sufficient to meet the 300 shareholders requirement for eventual admission to quotation on the NASDAQ Small Cap Market or American Stock Exchange (if the private company's financial condition substantiates other NASDAQ or AMEX requirements). The company must file a form S-4, this form is use to register securities in connection with Business combinations and exchange offers. although some shells have as few as 35-50 shareholders, and are currently listed (or can apply for listing) on the OTC Bulletin Board or the NQB Pink Sheets.
A Reverse Merger may be the quickest way to go public but is it the best?Lets look at a few drawbacks of using a Reverse merger to take your company public.
(1). The cost of the shell: the price of corporate shells has skyrocketed over the last couple of years, due to increased SEC scrutiny and demand for shells by Chinese companies looking to go public and trade in the U.S.
The price of public shells today start at $500,000.00 and people are paying it. With all the other expenses the final cost of doing a Reverse Merger could be close to one million dollars.
<Do you know of someone who has recently lost a loved one? If so, you may be interested in sending a sympathy gift. When it comes to sympathy gifts, especially concerning the loss of a loved one, there are many individuals who choose to send flowers. While flowers are nice, you may actually want to think about sending a sympathy gift basket.When it comes to sending a sympathy gift basket instead of traditional flowers, you may be wondering why it is advised. If you have ever lost a loved one, you may know that flowers are how many people send their condolences. While there is nothing wrong wi
A Reverse Merger may be the quickest way to go public but is it the best?Lets look at a few drawbacks of using a Reverse merger to take your company public.
(1). The cost of the shell: the price of corporate shells has skyrocketed over the last couple of years, due to increased SEC scrutiny and demand for shells by Chinese companies looking to go public and trade in the U.S.
The price of public shells today start at $500,000.00 and people are paying it. With all the other expenses the final cost of doing a Reverse Merger could be close to one million dollars.
<When terrorists shook America and the world with the September 11 attacks of 2001, they didn’t just hit the travel industry hard but also changed the way corporate travel management functioned. Post 9/11, corporate travel management in the U.S. has become as much about security as it is about booking low-priced tickets and hotel rooms. Though the terrorists could not deter business travelers too long despite using airliners to hit prominent targets in New York City and Washington, they certainly prompted corporate travel management firms to rethink strategy.As business spreads to new and at tim
(1). The cost of the shell: the price of corporate shells has skyrocketed over the last couple of years, due to increased SEC scrutiny and demand for shells by Chinese companies looking to go public and trade in the U.S.
The price of public shells today start at $500,000.00 and people are paying it. With all the other expenses the final cost of doing a Reverse Merger could be close to one million dollars.
(2). Greedy shell owners: The shell owner not being satisfied with the $500,000.00 Plus he gets for the shell and usually keeps 5-15% of the shares for himself.
The shell owner’s shares will come out and cause problems for your share price when you least expect it, even if he sign an agreement not to sell for a year, he can not be trusted, it’s the nature of the beast, greedy and slimy like all snakes.
Don’t let the shell owner dictate to you and insert a stipulation in the contract forbidding you to do a reverse split, after all he needs you more than you need him, you can go public without him but he can’t get his money without you.
(3). The smooth talking consultant that can sell ice to an Eskimo in the middle of winter. He will paint a rosy picture and not warn you of possible bumps in the road to the public square.
Often the consultant may be the shell owner at the same time or at least own a piece of the pie, and is disguising his ownership with the help of a Lawyer.
The consultant should have financial industry experience, if he doesn’t have a website, most likely he does not want the visibility that the website provides and is operating in a stealth manner, under the regulators radar screen.
A website provides a open forum for consultants to do business but many shy from it because they do not want the regulators to see what they are doing, many have been barred by the SEC from having any involvement with securities transactions.
I keep a website and write articles because I want the visibility they provide. In many cases if you type the name of the consultant into google you will be able to see if they have been convicted by the SEC of securities fraud in the past.
(4). Due diligence: proper due diligence can save a lot of headaches later on, examine the shell closely, why are they out of business? Or if they have any h
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