Everything you need to know about Reverse Shell Mergers by Ralph Amato
This is not the time to sit on the sidelines and watch the world go by. This is the time for companies to move forward with their audacious plans. If you start now your company will be well positioned when the economy gets back on track. Entrepreneurs with passion and vision [...]
Why is now a great time to go public? Because companies will have expansion and acquisition opportunities in the next two to three years that they would never realize under conditions in a normal financial market. It is always best to proceed while everyone else is taking refuge in his or her bomb [...]
Going public in today’s environment will be difficult at best. If you do not need to raise capital at this time you have an advantage. You can take your company public and wait for the markets to revive and then look to raise the capital you need. But if you need to [...]
But what about the smaller emerging growth companies that also need to go public. Who will underwrites those deals? Until new underwriters replace the old guard the answer is – nobody. So, if you have a great company that needs to go public and raise additional capital you better start thinking out [...]
Right now the IPO market has come to a grinding halt. It will take at least two to three years for it to revive itself. The market will only get kick started when new underwriters begin to surface. These new underwriters will mostly likely take the form of smaller, boutique firms. [...]
A company who has had their IPO cancelled by the underwriter can either completely cancel its public offering and wait for the markets to revive in three years or it could use an alternative vehicle to go public, namely a reverse merger into an OTCBB shell combined with a PIPE financing.
This year (2009) will be [...]
Last year all of institutional investors took huge write-downs and losses so right now they all have a wait and see attitude when it comes to investing in future IPO’s. Without the participation of investors for the IPO’s the investment banking community started cancelling pending and future IPO underwritings. Many companies who anticipated [...]
The reason there will be extended period of inaction in the IPO marketplace is because of the risk associated with underwriting an IPO. In the past institutional investors, hedge funds and money managers were the major purchasers of IPO’s. Matter of fact individual investors were shut out of the IPO marketplace because of [...]
There was one technology IPO for the fourth quarter and a total of 43 IPO’s for all of 2008. Now compare that to 272 IPO’s for 2007. Almost an 85% drop in volume. Is this the demise of the IPO? This columnist does not believe so.
So, what is the problem? [...]
US IPOs
IPO Summary Stats
2003
2004
2005
2006
2007
2008
No. of Deals
70
217
214
221
272
43
Total Proceeds (billions)
$15.4
$43.0
$35.6
$44.9
$59.7
$28.0
Average Deal Size (millions)
$220
$198
$166
$203
$219
$650
Please note: Includes 1, 21, 24, 58 and 12 SPACs in 2004, 2005, 2006, 2007 and 2008, respectively. Chart provided by Renaissance Capital www.ipohome.com
Rough year for IPOs may lead to [...]
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