Investor Relations Before & After Reverse Mergers or Take Overs

Investor relations after a reverse merger or take over is critical for success. It is important that the new management accurately communicates to existing and potential shareholders the new vision and strategy for the company. While reverse mergers and takeovers, either friendly or hostile, are not a new phenomenon in the public markets, today’s methods of communications have evolved and now make it easier to communicate the companies future plans.

Depending on the company status prior to a reverse merger or takeover will depend on the level of communication necessary to delineate the company’s new business or strategy. A smart investor relations program cost-effectively and efficiently help inform current investors and potential investors about the current happenings and future happenings of the company.

Here are a few strategies that can be implemented in an investor relations program before, during, and after a reverse merger or take over:

  • Press release: A press release should be issued after a reverse merger or takeover has taken place to announce the new company, new management and new game plan of the company. While many press release portals do not have the reach of other current communications, it is still a place where many investors go to find information about the company they invested in.
  • Social media channels: The reverse merger or takeover should be announced on the company’s social media channels and if the budget allows, on other relevant social media channels. Over 2 billion people have social media accounts on Facebook and Instagram and this does not include several other portals where investors and potential investors can be reached. Organic blasting of social media channels is free and if the proper hashtags and tags are used, they can reach an exorbitant amount of people. If a budget is placed behind certain social media post, the return-on-investment is extremely lucrative to growing companies.
  • NOBO lists: Nobo lists, non-objecting beneficial owners, a list that can be acquired by a public company’s management of all beneficiary shareholders, is a great place to market and announce a takeover or reverse merger. These lists, which include the current shareholders of the company, can be contacted directly via snail mail or email to announce the company’s new happenings and strategies.
  • Micro cap conferences: Depending on the size of the company, conferences, and trade shows are a great way to announce a takeover or reverse merger. While this tactic may be costly, the audience at these events is guaranteed to be interested in the new news.

These are just several ways to implement investor relations strategies after a reverse merger or takeover. Navigating a reverse merger or takeover in the eyes of investors and potential investors is no easy task. Having a great team to assist in this matter can be the difference between the success and failure of a reverse merger or take over. If your company needs assistance in the investor relations arena, please contact us:

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