This entry is part 1 of 14 in the series Reverse Mergers Attract Foreign CompaniesWhile in Manhattan I spoke with several investment bankers and SEC attorneys about the future of reverse mergers and PIPE’s. Considering the plight of the economy and the swings in the financial markets the general consensus was remarkably positive. Reverse mergers [...]

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This entry is part 2 of 14 in the series Reverse Mergers Attract Foreign CompaniesThere are some startling differences between a US based company performing a reverse merger into an OTCBB shell and a foreign company performing the same transaction. US based companies may or may not be revenue producing and profitable. Most foreign companies [...]

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This entry is part 3 of 14 in the series Reverse Mergers Attract Foreign CompaniesForeign and US based companies have two entirely different mind sets when it comes to the valuation and capitalization of their company’s. US companies have a tendency to believe that their company is worth far more than the marketplace will allow. [...]

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This entry is part 4 of 14 in the series Reverse Mergers Attract Foreign CompaniesThe mindset of management for US based and foreign companies are also completely different. US based management is usually more concerned with daily price fluctuations in their stock than foreign company management. US managers understand they are constantly under pressure from [...]

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This entry is part 5 of 14 in the series Reverse Mergers Attract Foreign CompaniesMost 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 [...]

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This entry is part 6 of 14 in the series Reverse Mergers Attract Foreign CompaniesThere are many cultural differences between US investors and management of foreign companies. US investors have certain expectations when they make an investment in a company, regardless whether it is foreign or domestic. In most cases they expect a substantial ROI [...]

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This entry is part 7 of 14 in the series Reverse Mergers Attract Foreign CompaniesThe thought processes of going public through a reverse merger are quite different for foreign companies versus their US counterparts. Consideration of revenues and profits of foreign companies differ greatly from the investor’s point of view. Most foreign companies will not [...]

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This entry is part 8 of 14 in the series Reverse Mergers Attract Foreign CompaniesThere terms and conditions of financing a US based versus foreign company are as different as night and day. Most US based companies have a tendency to give their companies much higher valuations than they deserve. Investors are usually split into [...]

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This entry is part 9 of 14 in the series Reverse Mergers Attract Foreign CompaniesInvestment in a foreign company is treated in a much different manner. This is due the inherent risk factors. Investors are keenly aware they have little recourse if a foreign company does not perform. Most of these emerging growth companies are [...]

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This entry is part 10 of 14 in the series Reverse Mergers Attract Foreign CompaniesForeign deals are valued differently than US deals. The goal for the foreign company is not to get listed on the OTCBB but to gain listing on an exchange like AMEX or NASDAQ. To do this they have to demonstrate earnings [...]

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