Regulations, Reverse Mergers
Second Quarter Reverse Mergers Not Great, But Experts Hopeful
July 26, 2009 by David Feldman · 1 Comment
Reprinted from our sister blog at www.reversemergerblog.com.
The Reverse Merger Report, in its July issue, noted that the number of reverse mergers continued to slide in the second quarter of 2009, with just 37 deals getting completed. This is a reduction of 12% from the first quarter and 30% from the second quarter of last year. Interestingly, in the quarter the IPO market has improved. While some think this means more competition for reverse mergers, my experience has been that during up markets and strong IPO activity, reverse mergers also remain strong for companies seeking to go public even faster than with a traditional IPO.
Experts quoted in the article point to China as the place that will help the RM business come out of the doldrums. I agree. Things are really bubbling over there and we hope there will be more and more activity from the PRC. Based solely on my firm, those experts could well be most right. And hey, 37 deals is still not that bad. But the financing market also stayed very weak, and that is a bigger problem. PIPE guys, please join China as the Calgon-equivalent of this RM downturn…..
You will definitely save a lot of money if you prefer to hire some private companies to process your business plan on going public. You need some help from someone who knows the entire procedure of filing at the Security and Exchange Commission.