Reverse Mergers

Reverse merger transactions and reverse mergers performed simultaneously with PIPE (Private Investment in Public Equity) funding have become viable alternatives for private companies seeking an efficient method to go public and obtain critical operating capital. Belmont Partners specializes in providing public company vehicles for use in reverse mergers.

Belmont Partners has the infrastructure in place with a sustainable business model, to deliver recurring value to clients. All shell transactions are structured and executed in a fully compliant manner, meeting all the necessary regulatory requirements.

Target Market

Belmont Partners focuses on working with experienced industry professionals who represent small- to-middle market private companies having revenues between $15 and $150 million, in diverse industry sectors including but not limited to real estate, oil and gas, retail, alternative energy, telecommunications, technology, healthcare, business, and education.

Public Vehicles

Belmont Partners is the leading U.S. provider of high-quality public shell companies. Well-documented and validated public vehicle candidates are offered in all over-the-counter (OTC) market sectors, including Bulletin Board, Pink Sheets, Gray and other OTC-traded as well as non-traded companies.

Private Company Qualification

Fundamental qualification criteria include a strong management team, solid growth potential, financial consistency and proven success within the marketplace.

Advisory Services

Belmont Partners provides strategic advisory services which are designed to assist emerging growth businesses formulate and implement optimal business strategies for corporate restructuring and reverse merger transactions by providing the highest quality public vehicles. The comprehensive public shell selection process clearly identifies objectives and develops a client specific strategic course with the goal of achieving the strongest possible valuation and market position for the future company and its stakeholders.

• Transaction negotiation and strategic advice
• Capital structure formation and pricing terms negotiation
• Business valuation, risk assessment, and growth strategies
• Advise and assist in identification and selection of the best shell public vehicle
• Identify the best transaction professionals including investor relations, legal counsel and accounting
• Due diligence
• Compliance and regulatory consultation

Advantages to Going Public through Reverse Merger

While small businesses entering the public markets face such challenges as capital requirements and regulatory hurdles, the advantages of public trading status often far outweigh the disadvantages. Publicly traded businesses enjoy:

• Greater access to capital and future financing options
• Liquidity and viable exit for investors and shareholders
• Significantly higher valuations
• Public prestige and publicity beneficial for recruiting and marketing

For many small-to-middle cap businesses, the IPO may neither be feasible nor the most efficient method of gaining access to public status.

The benefits of a well-structured reverse merger include:

• Quicker and simpler process (average of 2 to 4 months for a reverse merger vs. 1 year for a traditional IPO)
• Significantly less expensive than an IPO
• Potentially eliminates the risk associated with fluctuating market conditions
• Less stock dilution
• Platform for future acquisition strategy