DealFlow Media’s Reverse Merger Conference has just convened. This year the conference had close to 350 attendees. Here is an overview of what was discussed at the event:

• 2007 – First quarter results – 53 reverse mergers with $3 billion market cap – 100% higher than the prior year quarter!
• A new study at the University of Pittsburgh showed that 91% of the companies that performed a reverse merger are still in existence three years later. This contrasts with a previous study suggesting that the survival rate was about 40% to 45%.
• The University of Pittsburgh study also showed that the average time to complete a reverse merger was 51 days.
• The new SEC small public company proposals are having a positive impact. Lets’ hope the final rule proposal language is not revised to the point of non recognition.
• The number of reverse mergers reached 206 in 2006, a slight increase from the prior year.  This number outpaced the 198 traditional IPOs.
• The aggregate market value of reverse mergers in 2006 was $8.4 billion
• There were 59 trading SPACs at the end of 2006.
• In 2006 almost 50% of reverse mergers executed a financing or “alternative public offering”.  The average raise was $9.4 million per deal or an aggregate of $850 million.
• Chinese transactions increased to 26% of the total number of reverse mergers in 2006 but the total value of those deals dropped by almost 50% from 2005.
• The average traditional IPO in 2006 raised $216 million translating into average post IPO market cap of $750 million.

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