Reverse merger - Hutchinson encyclopedia article about Reverse merger Printer Friendly
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reverse takeover
(redirected from Reverse merger)

   Also found in: Dictionary/thesaurus, Financial, Wikipedia 0.01 sec.

reverse takeover

In business, situation where a smaller company takes over a larger one. This may be a company's strategy to avoid a hostile takeover by selling itself to a white knight. The term is also used to describe the situation where a private company buys a publicly-listed company. This is often the most cost-effective method of obtaining a public listing because it avoids the expense associated with a flotation.



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For companies seeking the image benefit of being public, a reverse merger may be the ideal solution.
A reverse merger involves these circumstances: In a public shell reverse merger ?
Such companies may be able to access the necessary capital by going public via a reverse merger into a public shell.
 
 
 
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