Independent corporate finance and investment advisory firm, specialising in smaller quoted and larger unquoted companies

Our Services

Quoted Cash Shells

For clients looking to raise capital and achieve a quote:
For certain clients, reversing into a Cash Shell may represent an attractive alternative to an IPO or private equity fundraising. A Cash Shell may allow a transaction to be structured according to the particular requirements of a company or project in a more flexible way. A reversal is suited to situations where certainty of funding and timing is a key factor. Situations where a Cash Shell can work best include:

Roll-ups/Consolidation Strategies

  • Acquisition of one or more companies with enlarged group seeking a quote
  • Quoted paper as acquisition currency

Management Buy-outs/Buy-ins

  • MBI team with quoted paper and cash but target to be identified
  • Funding and quoted paper for MBO team

Small or Zero Funding Requirement

  • Difficult to attract broker interest in an IPO if less than £5m
  • Cash Shell can provide better liquidity than an Introduction

In these situations, a reversal may also provide an effective mechanism to attract and incentivise key personnel and raise the corporate profile in the same way as an IPO.

For failed or failing quoted companies:
Shareholder interests in failed or failing quoted companies can sometimes be best served by re-organising and restructuring the entity to produce a Cash Shell with a strategy to create value for shareholders by identifying an attractive operating business for a reverse takeover.

Merchant Capital advises clients on the restructuring process which may include disposing of any residual businesses or assets, putting the company through a Company Voluntary Arrangement (‘CVA’), new board appointments and an injection of new capital. The aim is to realize value for shareholders through the restructuring and provide them with a residual interest in a clean vehicle positioned for a reverse takeover.

Merchant Capital Limited
Aldermary House
10-15 Queen Street
London EC4N 1TX
United Kingdom
Tel: +44 (0)20 7332 2200