A reverse merger (also referred to as a reverse takeover or reverse IPO) is usually a way for private companies to go public, usually through a more convenient, shorter, and less expensive process. A conventional initial public offering (IPO) is a lot more complicated and costly, as private companies seek the services of an investment bank to underwrite and also issue shares of the soon-to-be public company. Besides filing the regulatory paperwork – and helping authorities examine the deal – the bank can also help to establish interest in the stock and provide recommendations on appropriate initial pricing.

Reverse Merger Process