A reverse takeover or reverse merger takeover (reverse IPO) is the acquisition of a public company by a private company so that the private company can forgo the lengthy and complex process of going public through the normal registration process. The transaction typically requires reorganization of capitalization of the acquiring company.
In a reverse takeover the shareholders of the private company purchase control of the public shell company and then merge it with the private company. The publicly traded corporation is called a “Shell” since all that exists of the original company is its organizational structure. In this type transaction the private company shareholders receive a substantial majority of the shares of the public company. They also take control of its board of directors. The transaction can be accomplished within weeks.
We understand the majority of business owners are not familiar with the procedures and requirements to access capital funding using reverse merger takeovers, yet in order to complete the process they must get involved in critical decisions and negotiations in an arena that is very new and unfamiliar to them.
We at Sixforces realize this can easily create a very stressful situation for many entrepreneurs. For this reason, we have simplified and streamed lined the reverse merger funding process in such a way to educate business owners while instilling a sense of comfort and control from start to finish.