reverse merger

reverse merger
USA
This term has several meanings. In the context of:
• Securities and capital markets, a process by which a private company goes public without a traditional initial public offering (IPO) by combining with an empty public entity shell company. For more information on reverse mergers as an alternative to an IPO, see Practice Note, Reverse Mergers: The IPO Alternative (www.practicallaw.com/1-500-3578).
• Mergers and acquisitions, a merger in which the buyer merges with and into the target company and the buyer ceases to exist as a separate entity. This structure is not very common. Most mergers are structured as forward mergers, forward triangular mergers or reverse triangular mergers. Parties may choose to use a reverse merger structure when there are significant change of control issues.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Игры ⚽ Нужно сделать НИР?

Look at other dictionaries:

  • reverse merger — ➔ merger * * * reverse merger UK US noun [C] ► FINANCE, STOCK MARKET a situation in which a private company (= one whose shares are not traded on a stock market) buys most of the shares in a public company so that it controls that company and… …   Financial and business terms

  • Reverse Merger — …   Википедия

  • Reverse takeover — (reverse IPO) is the acquisition of a public company by a private company to bypass the lengthy and complex process of going public. The transaction typically requires reorganization of capitalization of the acquiring company.ProcessIn a reverse… …   Wikipedia

  • Merger — (1) Acquisition in which all assets and liabilities are absorbed by the buyer. (2) More generally, any combination of two companies. The New York Times Financial Glossary * * * merger merg‧er [ˈmɜːdʒə ǁ ˈmɜːrdʒər] noun [countable] FINANCE an… …   Financial and business terms

  • merger — (1) acquisition in which all assets and liabilities ( liability) are absorbed by the buyer. Bloomberg Financial Dictionary (2) More generally, any combination of two companies. The firm s activity in this respect is sometimes called M&A (Merger… …   Financial and business terms

  • Reverse Takeover - RTO — A type of merger used by private companies to become publicly traded without resorting to an initial public offering. Initially, the private company buys enough shares to control a publicly traded company. The private company s shareholder then… …   Investment dictionary

  • Reverse Takeover — Ein Reverse Takeover (RTO), Back Door Listing oder Reverse Merger ist eine Transaktion bei der ein nicht börsennotiertes Unternehmen ohne einen Börsengang zu einem börsennotierten Unternehmen wird. Dies geschieht, indem die Aktionäre des nicht… …   Deutsch Wikipedia

  • merger subsidiary — USA A subsidiary formed by a party for purposes of effecting a form of indirect merger, such as a forward triangular merger or reverse triangular merger. In a forward triangular merger, the target company is merged with and into the acquiror s… …   Law dictionary

  • reverse triangular merger — USA A form of merger in which: • The buyer forms a subsidiary and that merger subsidiary merges with and into the target company. • The target company assumes all of the merger subsidiary s assets, rights and liabilities by operation of law. •… …   Law dictionary

  • merger reserve — The availability of merger relief is an essential prerequisite for merger accounting; the reverse is not, however, the case and it is possible to obtain merger relief while acquisition accounting. Where this is the case, the premium on the issue… …   Law dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”