Miro Zecevic

Mergers & Acquisitions - what is the difference?   Mergers and Acquisitions (M&A) is the area of corporate financing, management and strategy dealing with purchasing and or joining with other companies. It is an umbrella term for various transactions such as mergers, acquisitions, consolidations, tender offers, purchase of offers and management acquisitions. In mergers and acquisition two companies are involved but in merger two companies are combined in one and in acquisition one usually larger company buys another smaller company. From a legal point of view, a merger is a legal consolidation of two entities into one entity, whereas acquisition occurs when one entity takes ownership of another entity's stock, equity interests or assets. From a commercial and economic point of view, both types of transactions generally results in the consolidation of assets and liabilities and liabilities into one entity and the distinction between a merger and an acqui...

What is alternative to IPO? Reverse merger is a good alternative to traditional initial public offering. Reveres merger is the acquisition of a public company by a private company when shareholder of a private company purchase control of the public company and then merge it with a private company. In this way lengthy and complex process of IPO is bypassed. Publicly traded corporation is called shell because that company usually doesn't have any assets or net value but only its organizational structure.  What reverse merger does is that it separates the going public process and capital raising function. Is is basically conversion mechanism that turns private company into public company. Raising capital is not priority but benefits that come with being a publicly traded company. This separation is the main reason why reverse mergers has so much benefits. private company doesn't have to hire investment bank for underwriting and marketing the shares t...

Reverse Merger A reverse merger is a  merger  in which a private company becomes a public company by acquiring it. It saves a private company from the complicated process and expensive compliance of becoming a public company. Instead, it acquires a public company as an investment and converts itself into a public company. Advantages of Reverse Merger The private company becomes a public company at a lesser cost and gets listed on the exchange without IPO. This type of merger does not create a negative impact on the competition in the market. The chances of reverse  mergers  being put on hold due to negative impact are very less. It helps in saving of taxes of private companies. Disadvantages of Reverse Merger             Lawsuits for various reasons are very common during the reverse             Often the promises made during reverse merger do not come...

Rising Capital with Your Public Company The Problem Solved by Continuous Offerings Period to the introduction of Reg A+, companies with existing stock trading are willing to sell with the old Reg A. To achieve this, the price of the price of the stock had to be relatively reasonably compared to the market price. But, the market price by small companies can be unpredictable or volatile. To enable the company changes the offering price, the company must file an amendment of its Reg A+ filing, and it takes weeks to get the approval by the SEC. During this period of waiting, changes in the market price automatically mean that pricing would be out of date. After the offering is approved by the SEC, companies have the right to offer stock at various prices over a period through the new Reg A+. At the time of sale, pricing information is filed after sale as a supplement which does not require the SEC review. Terminology First, there is a need to understand the differenc...