Asyst Technologies, Inc. (fka ASYTQ)

[trader53]

Reverse Mergers


A reverse merger is a method by which a private company
merges with a shell and becomes public without a traditional
public offering.

The private company’s shareholders generally
receive between 65% and 95% of the public shell’s stock. Four
factors tend to affect this valuation:

1 “Cleanliness” of the shell. This is primarily dependent on
how recently an operating business existed in the shell.

2 Valuation of the private company merging in. A start-up
will retain less of the merged company than a sales-generating
company with $1 million in earnings.

3 Cash. Cash in the shell increases the shell’s value.

4 Shell management. The value of the shell will improve if
those managing the shell have reputable backgrounds.