What Is The Recipe For A Successful Reverse Takeover?
Mergers And Acquisitions Newsletter™
Hey Legends!
Let me share with you one of the greatest M&A strategies out there!
In a reverse merger, investors of the private company acquire a majority of the shares of a public shell company, which is then combined with the purchasing entity.
These simple shell companies can be registered with the Swedish Stock Exchange on the front end (prior to the deal), making the registration process relatively straightforward and less expensive. (I think Sweden is a pretty easy Stock Exchange to deal with and way cheaper and faster than NY or Toronto exchanges).
Recipe:
Find a Target Company: Build a solid data-room (appraisals, valuation, licenses, etc)
Set Up Shell Company: A Swedish Non-listed private company with a bank account in place.
DPO-IPO 30 days in the Swedish Stock Exchange
Minimum Market Cap 75MM-100MM:
Approximately Set Up Cost: $300,000
How long does it take? 90 days maximum.
Advantages: Remember a successful reverse merger can increase the value of a company's stock and its liquidity and it's great to gain public company status.
Don't Have The Capital? How to do it?
If you do not have the capital to do this kind of strategic acquisitions, I would suggest getting an investor with $300,000 to cover the ¨Set Up Costs¨ and you can start finding target companies globally (you can give the Investor 500K-1MM in public shares).
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See ya in the inbox!
Sebastian Amieva
Mergers And Acquisitions Newsletter™
PS. 𝐆𝐞𝐭 𝐘𝐨𝐮𝐫 𝐅𝐑𝐄𝐄 𝐂𝐨𝐩𝐲 𝐎𝐟 𝐓𝐡𝐞 𝐌𝐞𝐫𝐠𝐞𝐫𝐬 & 𝐀𝐜𝐪𝐮𝐢𝐬𝐢𝐭𝐢𝐨𝐧𝐬 𝐏𝐥𝐚𝐲𝐛𝐨𝐨𝐤!
A sneak peak of what's inside:
- 10 Big Problems Faced by DealMakers:
- Acquisition Criteria
- DealFlow
- Deal Team
- How to conduct a preliminary due diligence?
- How to negotiate with motivated sellers? Negotiation Checklist.
- How To Quickly Analyse A Deal ?
- Capital.
Get It Here:
https://www.sebastianamieva.com/store/products/playbook
PS.. If you want to get personally mentored by Sebastian Amieva and start learning how to buy businesses for a living ( with little to no money down) or how to grow via M&A please book a call HERE