(1888PressRelease)
September 05, 2006 - According to Douglas M King, President of King & Associates, P.C., King & Associates, P.C. is a consulting firm dedicated to helping businesses with public and private transactions. We have numerous public shells available for sale and reverse mergers. Usually this includes our valuation services to determine the initial price of the shares, as well.
In a reverse merger the private company shareholders receive a substantial majority of the shares of the public company and control of its board of directors. The transaction can be accomplished within weeks, resulting in the private company becoming a public company. If the shell is a reporting SEC registered company, the private company does not go through an expensive and time consuming review process with state and federal regulators because the public company has already completed the process.
The transaction involves the private and public company exchanging information on each other, negotiating the merger terms, and signing a share exchange agreement. At the closing the shell company issues a substantial majority of its shares and board control to the shareholders of the private company, who pay for the public shell, and contribute their private company shares to the public shell company they now control. This share exchange and change of control completes the reverse merger and the private company is now public.
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