GONZO. PLEASE READ THIS AND TELL ME THAT MULTI-BILLION DOLLAR COMPANIES DO NOT BUY PUBLIC SHELLS AND REVERSE MERGE INTO THEM. WE REST OUR CASE.
Famous Reverse Mergers
Many people don’t realize how many famous companies went public via a reverse merger. The venerable institution the New York Stock Exchange went public in 2006 by doing a reverse merger. Some of the most high profile reverse mergers involve well known businessmen such as Warren Buffett, Ted Turner, Tony Robbins as well as Muriel Siebert, the first woman to purchase a seat on the NYSE (New York Stock Exchange). There are also many brand name corporations who have utilized a reverse merger including Burger King, Jamba Juice, Blockbuster Video, Tandy Corporation (Radio Shack), Texas Instruments and Waste Management.
Although they are not as high profile as an IPO (Initial Public Offering), reverse mergers are a viable option for companies large and small that are seeking to go public. A reverse merger is enacted when a private company merges into a pre-existing public shell in order to become a public company. There are several reasons for choosing to employ a reverse merger but the main motivations are the accelerated speed of going public and the increased access to capital sources available once a company does go public.
Most people familiar with the financial world know the name of Warren Buffett, he is one of the wealthiest men in the world and like the old brokerage firm ad says when he talks, people listen. A reverse merger was good enough for him; Buffett bought out a textile manufacturing company and then merged his insurance empire into it without even changing the name. His company, Berkshire Hathaway, is the product of one of the most famous reverse mergers to date.
