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Reverse takeover. A reverse takeover ( RTO ), reverse merger, or reverse IPO is the acquisition of a public company by a private company so that the private company can bypass the lengthy and complex process of going public. [1] Sometimes, conversely, the public company is bought by the private company through an asset swap and share issue. [2]
Corporate finance. Mergers and acquisitions ( M&A) are business transactions in which the ownership of companies, business organizations, or their operating units are transferred to or consolidated with another company or business organization. This could happen through direct absorption, a merger, a tender offer or a hostile takeover. [ 1]
Reverse Morris Trust. A Reverse Morris Trust in United States law is a transaction that combines a divisive reorganization ( spin-off) with an acquisitive reorganization ( statutory merger) to allow a tax-free transfer (in the guise of a merger) of a subsidiary. [1] It may be especially useful when one publicly-traded C-corporation wants to ...
A special-purpose acquisition company ( SPAC; / spæk / ), also known as a " blank check company ", is a shell corporation listed on a stock exchange with the purpose of acquiring (or merging with) a private company, thus making the private company public without going through the initial public offering process, which often carries significant ...
A reverse stock split occurs when a publicly traded company reduces the number of its outstanding shares. A reverse stock split decreases the number of outstanding shares and proportionately ...
Chinese reverse mergers within the United States are accountable for 85% of all foreign reverse mergers in the early 21st century. [1] A reverse merger, also known as a reverse takeover, is where a private company acquires a publicly traded firm or "shell company" that has essentially zero value on a registered stock exchange. [citation needed]
Mergers and acquisitions are a driving force in the world of finance. Banks, for example, are consolidating all the time, and mergers are how some of the largest banks in America have grown so large.
A reverse stock split is the mirror image of a conventional stock split. This typically only happens during times of great financial stress for companies.