Reverse Merger Consulting Firm Provides Improved Pricing for Clean Public Shell Manufacture

December 3, 2014 - ReverseMergers.com a provider of altnerative public offering solutions for companies looking to gain access to the U.S. capital markets, announces new pricing for assisting with the manufacture of clean, virgin public shell corporations available on the Over The Counter market exchange. The new pricing will make it cost effective for companies to go public on a tighter budget.

"We've been working with a varied client base lately from the nascent start-up with promising technology to the experienced manufacturer with 50 years in the business and everyone in between," says Jake Durrant, Managing Director of ReverseMergers.com. "Regardless of where our clients are in the lifecycle of their business, they all are looking for a cost-effective method for going public."

Unfortunately looking at the cost of going public is often the wrong metric and reverse mergers or direct public offerings are not the right fit for all companies looking to enter the public markets. While they are cheaper, they lack a great deal of the promotion and ultimate shareholder base available in a traditional IPO. However, for companies looking to raise capital or provide investors an immediate liquidity event at an inexpensive price point, going public with a reverse merger is actually a very viable option.

Perhaps one of the best reasons to go public through a reverse merger is that doing so allows company management to use the more liquid public stock as a bargaining chip in M&A transactions. Because the public stock is more liquid, the company's management is able to negotiate in both private and public mergers and acquisitions using stock as consideration. This means that less cash is used in such transactions, making it easier to use the cash as a reinvestment tool or in other M&A deals. This scenario is great if you're looking to do an industry roll-up.

A cost conscious reverse merger also provides an exit strategy for investors in a private deal. Because private stock has natural lock-in, investors often get anxious, especially if they invested in a deal years prior and have yet to receive a dividend let alone a liquidity event through M&A or a public offering. While a reverse merger may not guarantee strong market support, it does guarantee that at least some portion of the initial investment will be returned to investors.

The company's recent move to drop the price of its shell manufacturing services is not an effort to seek for more business at the bottom of the barrel, but it is a way to encourage business owners to look into reverse mergers through clean public shells as an option for going public.

About ReverseMergers.com
ReverseMergers.com and its principals have assisted over 100 companies go public on both the OTC and NASDAQ. The company has over 25 years of superb experience assisting businesses both small and large who may be seeking access to the public markets for raising capital or providing investor liquidity. They can be following @RMergers.