Reverse Merger Tip of the Week: Watch Out for "Hurry, Don't Worry"

In some cases, private companies and their investment bankers face tremendous pressure from a shell operator to complete a deal quickly.  “We have someone else ready to take it,” he says, “Hurry up, don’t worry about due diligence, everything is fine, if you don’t take this by tomorrow you lose it.” This hurry-up attitude can ...

Tip of the Week: Patience Pays Off

Complete your due diligence.  This means withstanding the pressure to cut corners that inevitably comes during the heat of trying to complete a transaction. A well-known celebrity considered participating in a transaction that had not been fully checked out.  I advised him: “A bad deal can often be worse, much worse, than no deal at ...

About the Book: Reverse Mergers

My book Reverse Mergers: Taking a Company Public Without an IPO was published in September. Here is the description from the publisher: Berkshire Hathaway, Turner Broadcasting System, Texas Instruments, Tandy Corporation, Occidental Petroleum, Muriel Siebert & Co., Blockbuster Entertainment, and the New York Stock Exchange all went public without doing initial public offerings. They did ...

Frequently Asked Questions

What is a reverse merger? A reverse merger is an alternative to a traditional initial public offering (IPO) for a company desiring to have its stock become publicly traded. In a reverse merger, the owners of a private company acquire control of a dormant public one, called a “shell,” and complete a business combination with ...