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Mergers And Acquisitions
Breakthrough Incorporated works with business owners who are
contemplating a sale or seeking merger or acquisition opportunities. We
assist owners in all areas of stock or asset sales, mergers, or
divestitures. Our highly experienced Merger & Acquisition specialists
provide insight and strategies on such matters as: When is the right time to
sell? Should all or part of the business be sold? Is the company ready for
sale, or should the focus be on building value for a future sale?
For most business owners the sale or other transition of a business is the
single most important, and perhaps the largest, financial event that occurs
in the life of the owner. Most business owners do not have an exit strategy.
Selling at the wrong time or without the right information can substantially
lower the value of the business.
We regularly conduct informational one-day conferences that provide business
owners with an overview of the process necessary to successfully sell a
private middle market business for maximum value. The information presented
in the conference will be a vital part of a strategy to ultimately sell your
business for the highest possible price.
Our seasoned M&A professionals can help the business owner anticipate
challenges and understand what needs to be done at every juncture of a
transaction. For each business owner we can prepare a customized marketing
strategy that presents the business to the most appropriate potential buyers
while maintaining strict Client confidentiality.
We also have access to thousands of buyers who are actively seeking to
acquire middle-market companies.
Reverse Mergers
A "Reverse Merger" is
a method by which a private company can go public by merging with a public
company. In a reverse merger a private company merges with a public company
that usually has no assets or liabilities. The public company in most
reverse merger scenarios is usually referred to as a "trading shell
company".
After the reverse
merger the private company would retain most of the public companies shares
and would be trading under the name of the private company prior to the
merger. The board members of the trading shell company would resign and the
private company would appoint their own board of directors.
The biggest advantage
of a private company doing a reverse merger with a public company is the
time it takes to get to public markets. If a private company goes public by
way of a reverse merger they can do so in usually two weeks versus up to a
year or more from scratch.
Reverse Merger Facts
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Nearly half of the
companies trading on a small cap exchange went public by way of a reverse
merger.
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Most private
companies that go public by way of a reverse merger experience higher
evaluations once public.
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Most private
companies have an easier time raising capital after going public due to
shareholder liquidity and reporting requirements.
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Ted Turner did a
reverse merger with Rice Broadcasting Inc. which became Turner
Broadcasting Inc.
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Blockbuster Video
went public by way of a reverse merger.
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