IN BRIEF
Who knows what opportunities are ahead of us for the 2016 year,
but being prepared is a very good place to start! How about a
Reverse Takeover?
- What is a reverse takeover?
Put simply, a reverse takeover (RTO) is the acquisition of a
public company by shareholders in a (usually smaller) private
company.
An RTO can be effected by the private company's shareholders
selling their shares in the private company to the public company
in exchange for the issue of shares in the public company.
Alternatively the private company can sell its business to the
public company in exchange for the issue of shares in the public
company to the private company.
An RTO is often considered as an alternative to an initial
public offering (IPO), and where the target public company is
listed, an RTO can also be known as a 'backdoor
listing'.
