There are numerous companies that perform reverse mergers, also known as reverse takeovers, as opposed to other, more standard forms of increasing capital. A reverse merger is when ever a private company becomes a public company by purchasing control of the public company. The shareholders of the non-public company commonly receive a large amount of ownership in the public company and also control of its board of directors (B of D). The moment this is carried out, the private and public companies merge into one publicly traded business. Read on to learn how investors might profit from these kinds of situations by understanding the risks and drawbacks.