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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

  • Nearly half of the companies trading on a small cap exchange went public by way of a reverse merger.

  • Most private companies that go public by way of a reverse merger experience higher evaluations once public.

  • Most private companies have an easier time raising capital after going public due to shareholder liquidity and reporting requirements.

  • Ted Turner did a reverse merger with Rice Broadcasting Inc. which became Turner Broadcasting Inc.

  • Blockbuster Video went public by way of a reverse merger.