Reverse Merger tasks

When I led a reverse merger in the role of CFO you had to know a lot about the deal flow, SEC requirements and be an expert on the internal business. Let me share some thoughts to start you thinking....

Be Organized

Create road map of deal mechanics

Use Sprint workflow and introduce team to weekly sprints

Know the goals of stakeholders and create goals for your team

Hedge Fund or Controlling Owners

Find objectives of the controlling stakeholders for the timing of merger and what value they think needs to be created for themselves and the organization

Get profile of shell company and determine potential for maximum raise.

Meet with their legal and business teams

Accounting

Deep dive on the financials

Evaluate if anything can be streamlined in accounting process

Upgrade financial dashboards. You will need these before and after merger.

Find break even and manage fixed costs

Prepare for SEC audit and select auditors

Be knowledgeable on the engine for Revenue

Review the business processes

Understand the technology/product and seek external assessment of the potential

Determine what tech/products are in the pipeline since you will need these to sustain momentum once you go public. This will make your investor calls have purpose.

Is the business scalable to meet future forecast demand?

Evaluate fixed and variable costs so you can guide the team to deliver profit that meets shareholder expectation

Be certain of the effectiveness of the sales/marketing strategy.

Merger

Verify the estimates of valuation and set ranges

Let SEC audit team loose to do their review

Guide due diligence of shell

Work with legal to draft SEC documents

Roadshow/raise capital

Work up promotion schedule and budget to promote stock