Eitan Eldar brings 3 main advantages of acquiring a shelf company:
- Raising capital – If a company (or private businessman) purchase more than 50 percents of the shares belong to the shelf company, it becomes the controller over the cash reserve of the company. The purchasing party can sthenghten the value of its money and raise capital by offering bonds or allotting stocks.
- Purchasing private companies – Owning a shelf company, explains Eitan Eldar, is a basis for parties interested to purchase private companies and merge with them. This process can increase the value of securities for the investors.
- No need in regulation – People acquire and merge with shelf companies also because there is no need in regulation of minumal recruitment.