About 8 pm on the evening of July 25, 1863, Brigadier General John Hunt Morgan and fewer than 500 Confederate raiders arrived at Nebo, now known as Bergholz, and set up camp throughout the village. Selecting the Herdman Taylor farm as his headquarters, Morgan forced the family to prepare a meal for him and his officers. The Confederates' advance scouts settled down at the D.G. Allen farm just north of Nebo. The rear guard camped at the Thomas McConaughey farm, south of the town.
The following morning word arrived that some of Morgan's advance scouts to the north had been attacked by Union scouts under Brigadier General James M. Shackelford's command. The news traveled quickly among the raiders, and they prepared to move out immediately. As the rear guard left, they set fire to the Yellow Creek Bridge, thinking it would slow their pursuers. However, the summer creek level was very low and easy to ford.
The Confederates hoped to reach Babb's Island Ford over the Ohio River at East Liverpool. While Morgan's rear guard moved north, a skirmish near Pott's School resulted in the wounding of a raider.