Seattle, Washington (PRWEB) September 29, 2014
ReverseMergers.com, provider of reverse merger services for taking companies public is actively seeking partnerships among startup fundraisers and technology incubation organizations for taking mid and microcap companies public. With nearly two decades of experience in taking the over 100 companies public, the Principals at ReverseMergers.com see opportunity for some startup companies that may need access to the public markets.
Because it only makes sense for a very small proportion of start-ups to go public on the OTCBB, ReverseMergers.com screens candidates carefully to ensure there is a meaningful fit. Several key areas are assessed in this process. First, candidates are weighed by their ability to provide a good barrier to entry. This could include a natural barrier to entry or a legal barrier such as Intellectual Property or Trademark rights. Second, a large addressable market and a large potential distributor base are key factors to success in companies that seek to go public, especially if they’re in startup mode. Finally, most companies that remain successful in the public market have a minimum profitability threshold.
One good reason for a start-up to go public is to help provide a liquid exit strategy for investors. “Most investors go into startup investment with companies that have no real exit strategy,” says Jake Durrant, Managing Director. “A qualified and inexpensive reverse merger can help provide a meaningful exit for investors. While going public out the gate may not be the proper strategy, our relationships with startup investors and entrepreneurs has yielded a great deal of fruit over the years,” he says. “When there is not a fit, we’re very open about it, but there is a time and a place. In some cases, we can be an alternative to more expensive financing sources like venture capital.”
Going public is less expensive than most business owners and investors think. “Going public doesn’t mean you have to go broke,” says Durrant. “You just have to know the right, qualified accountants, transfer agents and securities attorneys to ensure all the working parts of your deal get implemented.” With the right contacts within the startup world, the company hopes to assist more qualified companies in accessing the public market.
ReverseMergers.com is a firm specializing in taking private companies public. For the last two decades the company’s founders have taken more than 100 private companies public, including a few qualified startups. The Principals of ReverseMergers.com recognize there is always an existing need for private companies, even startups, that may need to go public with a reverse merger. They aim to fill that gap. Parties interested in getting involved in the company’s startup investment and reverse merger program are encouraged to reach out via ReverseMergers.com. They can also be followed on the company’s going public blog and on Twitter @RMergers.