There are man advantages of reverse mergers. Typically publicly traded companies enjoy substantially higher valuations than private companies. Raising capital is usually easier with reverse mergers because of the added liquidity for the investors, and it often takes less time and expense to complete an offering. Making acquisitions with public stock is often easier and less expensive, and stock options or stock incentives can be useful in attracting management and retaining valuable employees. The costs of reverse mergers are significantly less than the costs required for an initial public offering. There is less dilution of ownership control, compared to a traditional IPO. And no underwriter is needed for reverse mergers to happen.