Energy Consulting Services Can Help Your Business Raise Capital in a Challenging Market

Due to the current adverse market conditions, companies are turning to energy consulting firms to help them determine less traditional forms of raising capital. One less traditional route, a reverse merger, is when a private company purchases a controlling interest in a public company and as a result, becomes public. Typically, shareholders of the private company receive a large percentage of ownership and control of the public company’s board of directors and once the transaction is complete, the private and public organizations become one publically traded entity. There are many advantages of reverse mergers, they are:

  • Less costly and time-consuming than a traditional IPO
  • Characterized by higher valuations associated with public status
  • Less scrutinized by the SEC
  • Generally, smooth transactions compared to other routes due to the involvement of only a few parties
  • Less impacted by market conditions
  • Advantageous due to tax shelters offered
It is a wise decision to hire an energy consulting firm to help you from navigate the stages of a reverse merger from the start throughout close of the transaction. Due to their deep expertise and knowledge of market conditions, energy consultants can offer comprehensive services to your organization by identifying opportunities for reverse mergers, assisting in the planning and implementation stages, and offering continuous improvement strategies. Energy consultants will also deal with various threats presented during reverse merger transactions, like managing the expectations of anxious shareholders who, if deciding against the new company direction, may sell shares and significantly reduce share price.

By outsourcing the complex initiatives involved in a reverse merger to energy consulting firms, you allow your company’s management team the time to focus on core business processes with the relief of knowing that your business is in the hands of experienced energy consultants.

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