How to conduct the reverse merger business process.

A reverse merger—also known as a “backdoor listing”—is a method for a private company to become publicly traded, especially common in the U.S. over-the-counter (OTC) markets. Below is a detailed overview of its definition, advantages, process, and how it integrates with our services.

A reverse merger occurs when a private company acquires a publicly listed shell company to obtain public-company status. In the U.S. OTC market, many small or emerging enterprises that cannot meet the stringent listing requirements of major exchanges choose this route to go public and raise capital.

  1. Target Selection:
    Leveraging our extensive market resources and professional research capabilities, and aligned with your company’s strategic goals and development needs, we will precisely identify potential shell companies in the U.S. OTC market as candidates for your reverse merger.

  2. Due Diligence:
    We conduct comprehensive, in-depth due diligence on the selected shell company—covering financial condition, legal compliance, and business operations—to ensure there are no hidden risks or material issues, thus providing a solid foundation for your merger decision.

  3. Negotiation & Agreement Signing:
    On your behalf, we negotiate with the shell company’s shareholders to secure the most favorable merger terms. We draft and assist you in signing a detailed merger agreement that clearly outlines both parties’ rights and obligations, protecting your interests throughout the transaction.

  4. Post-Merger Integration:
    Once the reverse merger is complete, we assist you with the integration of business operations, finance, human resources, and other functions to achieve synergy, fully realize the value of the transaction, and help your company quickly establish its public presence and access to capital in the U.S. OTC market.

Choosing Capital First Group means choosing professional, efficient, and secure investment and listing services. We look forward to working with you to create value in the U.S. OTC market and propel your company to new heights.