Most foreign companies have grown organically and originate from countries that have not established financial markets and therefore there is no access to capital. These companies are patient and have bootstrapped their way to success by growing their companies through internal cash flow over several years. So their success comes at a great price and they understand the value of a dollar. Even though management of foreign companies has a long term view that does not mean investors will not see exponential growth. When foreign companies receive a large cash infusion from US investors it allows them to accelerate their ten year plan into two years. One must remember most foreign companies seeking to go public via a reverse merger are usually domiciled in one of the BRIC countries (Brazil, Russia, India & China). The BRIC countries are currently experiencing off the chart growth. Therefore, companies originating from theses countries have huge growth potential. The access to capital in the US markets is the secret sauce foreign companies need to participate in the growth of their respective countries.
Other posts of the serie
- Reverse Mergers Attract Foreign Companies - Part 1 - June 10, 2008
- Reverse Mergers Attract Foreign Companies – Part 2 - June 11, 2008
- Reverse Mergers Attract Foreign Companies – Part 3 - June 12, 2008
- Reverse Mergers Attract Foreign Companies – Part 4 - June 13, 2008
- Reverse Mergers Attract Foreign Companies – Part 5 (This post) - June 16, 2008
- Reverse Mergers Attract Foreign Companies – Part 6 - June 17, 2008
- Reverse Mergers Attract Foreign Companies – Part 7 - June 18, 2008
- Reverse Mergers Attract Foreign Companies – Part 8 - June 19, 2008
- Reverse Mergers Attract Foreign Companies – Part 9 - June 20, 2008
- Reverse Mergers Attract Foreign Companies – Part 10 - June 23, 2008
- Reverse Mergers Attract Foreign Companies – Part 11 - June 24, 2008
- Reverse Mergers Attract Foreign Companies – Part 12 - June 25, 2008
- Reverse Mergers Attract Foreign Companies – Part 13 - June 26, 2008
- Reverse Mergers Attract Foreign Companies – Part 14 - June 27, 2008









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