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] The transaction typically requires reorganization of capitalization of the acquiring company.[3]

  1. ^ "Investor Bulletin: Reverse Mergers" (PDF). U.S. SEC Office of Investor Education and Advocacy. June 2011.
  2. ^ Goh, Brenda (22 March 2016). "Alibaba-backed courier YTO Express to list via $2.7 billion reverse..." Reuters. Retrieved 9 April 2018.
  3. ^ "Reverse Takeover (RTO) Definition". Investopedia. Retrieved 10 November 2015.

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