Reverse mergers successful examples. Discuss good successful examples of reverse mergers, and may be very briefly explain why they are successful?
Some of the most successful reverse mergers according to Arellano Ostoa & Brusco (2002) include the following:
• New York Stock Exchange
• Waste Management
• Texas Instruments
• Warren Buffett
These are essential companies that highlight the track records of prosperous reverse mergers. Companies have utilized a reverse merger to go public and dominate the market and sustainable growth. The New York Stock Exchange reverse-merged into Archipelago Holdings for it to go public and achieve market success through the reverse merger process. Buffet purchased a textile manufacturing company and then merged with his insurance firm resulting in a successful merger due to his brand name.
Waste Management used reverse merging to establish a sustainable waste management services through strategic business opportunities that quickly integrate with the company to establish successful business operations. Turner merged his outdoor advertising to establish the Turner Broadcasting System. Other successful mergers use brand names in order to ensure that the reverse merging is sustainable. The brand name corporations that have had successful reverse mergers include Texas Instruments, Waste Management, Tandy Corporation, and Burger King (Abbott, Gunny& Pollard, 2017). Reverse mergers help companies not listed in New York Stock Exchange to go public and save the trouble of going through the IPO process and SEC review and approval scrutiny.
According to Adjei, Cyree& Walker (2008), reverse mergers help companies in going public and provide quick access to capital funding. These companies are successful because the reverse merger gave them increased corporate control in going public. The reverse merger has helped these companies to buy a shell company in their industries, which helps to build the brand image of the company. Reverse mergers have global companies to enter the US markets and become publicly traded companies. Therefore, reverse mergers are an essential strategy for going public. Buy from us this or a similar essays.
Abbott, L. J., Gunny, K., & Pollard, T. (2017). The Impact of Litigation Risk on Auditor Pricing Behavior: Evidence From Reverse Mergers. Contemporary Accounting Research, 34(2), 1103-1127.
Adjei, F., Cyree, K. B., & Walker, M. M. (2008). The determinants and survival of reverse mergers vs. IPOs. Journal of Economics and Finance, 32(2), 176-194.
Arellano Ostoa, A., & Brusco, S. (2002). Understanding reverse mergers: a first approach.