Reverse Merger (Reverse Takeover)

Reverse Merger (Reverse Takeover) defined: A reverse merger (reverse takeover) is a type of merger transaction used by private companies to become publicly traded without an initial public offering. A reverse merger is initiated when a private company purchases a controlling interest in a public company. The shareholders of the private company then exchange their shares in the private company for shares in the public company and thereby effectively becoming a publicly traded company.

Above is a definition for “Reverse Merger (Reverse Takeover)” from PrivCo’s Private Company Knowledge Bank, the definitive online and e-book guide to private companies and private company deals.

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