[FIRM LOGO]

A reverse merger often is considered a quicker and cheaper way for a company to go public, but new rules could make these transactions more difficult. The SEC recently applied the brakes to companies pursuing reverse mergers as a backdoor method of getting listed on major public stock exchanges. Although these rules won’t necessarily affect all plans, this article examines the potential obstacles. It explains what’s involved in a reverse merger, how the new rules promote greater transparency, and potential implications for companies and financial markets. A sidebar describes the three major steps involved in a reverse merger transaction.
Read More

When access to a company’s customer base is the primary motivation for an acquisition, buyers need to ensure those customers really are as valuable as they seem. If not, the purchase could be a very expensive mistake. This article advises buyers to perform thorough financial due diligence, talk directly with customers and examine the target company’s management practices.
Read More

Mergers between small-capitalized, privately held companies are different animals from larger-cap and public company combinations. Because small, private companies have far fewer reporting requirements and dedicated staffpeople than their larger public counterparts, financial and operating information — and the quality of that information — can become a major stumbling block. This article suggests that the key to success is preparation, particularly for business buyers and sellers with no prior M&A experience.
Read More

No matter how thoroughly an M&A deal’s benefits are explained to employees, there’s still a chance they’ll challenge it. If enough of them — particularly managers and other opinion leaders — are dead-set against a merger, it could be in serious trouble. This column provides tips on minimizing strong and potentially disruptive resistance.
Read More