Mergers & Acqusitions

Many companies choose to raise capital and "go public" through a process called a reverse merger. It is the acquisition of a public company by a private company to bypass the lengthy and complex process of going public. The transaction typically requires reorganization of capitalization of the acquiring company.

What is a Private Placement Memorandum?

	The issuance of additional stock in a secondary offering
	An exercise of warrants, where stockholders have the right to purchase additional shares in a company at predetermined prices. When many shareholders with warrants exercise their option to purchase additional shares, the company receives an infusion of capital.
	Other investors are more likely to invest in a company via a private offering of stock when a mechanism to sell their stock is in place should the company be successful.
	Increased liquidity of company stock
	Higher company valuation due to a higher share price
	Greater access to capital markets
	Ability to acquire other companies through stock transactions
	Ability to use stock incentive plans to attract and retain employees
	This is a complex process and is not suitable for all companies. Allow Capital Connection Financial to evaluate your situation and help you determine the best course of action to help your company grow.