Reverse Acquisition

An alternative method to a Private Placement is to go public through a reverse acquisition, which is a type of business combination in which a private company acquires a public company, allowing the private company to bypass the lengthy and complex process of going public. The advantages of a reverse merger include reduced time for going public, lower costs than IPO’s, liquidity of new shares, and growth opportunities. There are potential disadvantages, including undisclosed liabilities from the public company and the need to now provide SEC filings and maintaining public records.