RM Business Down in April, But….
By David Feldman at 20 May, 2009, 10:05 am
The Reverse Merger Report has delivered more bad news to the industry. Only eight companies completed reverse mergers in April, half of the number from a year ago. China also seems to have slowed, as the report indicates that this is the first month since 2005 that no Chinese company completed a reverse merger. And worse, of the eight deals, only one involved a contemporaneous financing, and that of only $400,000.
Note that reverse merger and going public closings will be delayed from market upticks and other positive developments in the economy. In other words, the deals that closed in April probably got started in December or January, when things were pretty rotten indeed. So while the stock market often predicts the future economy, reverse merger closings lag the market, at least for a few months.
One hopes and expects that the two month run-up in the stock market, along with other signs that the economy may indeed, finally, have bottomed out, will cause an increase in transactional volume. Anecdotally I can only tell you that activity in my office is noticeably better than a month or two ago. Hang in there!!!
Hi everyone,
I’m an ultimate year student at the Top French Business School Reims Management School and I am working on my thesis on the success of Reverse Mergers.
I am looking for some professionals to interview. It’s much more than just a thesis subject for me and I wish to enrich myself by this experience.
If some of you are interested in sharing their experience, please don’t hesitate to contact me.
Nathalie