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Reverse merger

Divya Jeswani (student) (217 Points)

27 November 2015

What is the difference btw Merger n Reverse Merger??Also from the tax point of view..

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Prashant Rajput (An insatiable Learner) (889 Points)
Replied 27 November 2015

Reverse Merger,Where did you come across this term?

Divya Jeswani (student) (217 Points)
Replied 27 November 2015

In my course syllabus of CS Professional Corporate Restructuring

Sathish M (Management Accountant) (40581 Points)
Replied 27 November 2015

A merger is the combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stock.

A reverse merger (also known as a reverse takeeover or reverse IPO) is a way for private companies to go public, typically through a simpler, shorter, and less expensive process. A conventional Initial Public Offering (IPO) is more complicated and expensive, as private companies hire an investment bank to Underwrite and issue shares of the soon-to-be public company. Aside from filing the regulatory paperwork - and helping authorities review the deal - the bank also helps to establish interest in the stock and provide advice on appropriate initial pricing. The traditional IPO necessarily combines the go-public process with the capital raising function.