Reverse Takeover

Knowledge Center

12manage is looking for students / contributors...


Description of Reverse Takeover. Explanation.


  1. Summary
  2. Forum
  3. Best Practices
  4. Expert Tips
  5. Resources
  6. Print

Definition Reverse Takeover. Description.

A Reverse Takeover or Reverse Merger is a strategic finance process whereby a privately-held company conducts a private placement of its common stock and then immediately combines with an existing public company in a transaction where the shareholders of the privately-held company exchange their private company shares for newly issued stock of the public company. The privately-held company becomes a publicly-held company without going the traditional route of filing a prospectus and undertaking an initial public offering (IPO). Rather, the shareholders of the private company sell all of their shares in the private company to the public company in exchange for shares of the public company.

While the transaction is technically a takeover of the private company by the public company, it is called a reverse takeover because typically the public company involved is only a "shell". It typically issues such a large number of shares to acquire the private company that the former shareholders of the private company end up controlling the public company.

Reverse Takeovers Forum
  Reverse Takeover Cases and Examples
Hi, do you know of a remarkable case or an interes...

Reverse Takeovers Special Interest Group

Special Interest Group


Best Practices - Reverse Takeovers Premium

Expert Tips - Reverse Takeovers Premium

Resources - Reverse Takeovers Premium

News about Reverse TakeoversSign up


Videos about Reverse TakeoversSign up


Presentations about Reverse TakeoversSign up


Books about Reverse TakeoversSign up


More about Reverse TakeoversSign up


Compare also: Acquisition Integration Approaches

Special Interest Group Leader

You here


Return to Management Hub: Finance & Investing  |  Strategy

More on Management  |  Return to Management Dictionary  | 


This ends our Reverse Takeover summary and forum.

About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2018 12manage - The Executive Fast Track. V14.1 - Last updated: 14-8-2018. All names of their owners.