Topics: Investment Banks : Reverse Mergers

A "reverse merger" is a method by which a Private Company or an unincorporated business goes public. In a reverse merger, a Private Company merges with an existing Public Company with no assets or liabilities. By merging into such an entity, a Private Company becomes public. The Private Company obtains the majority of the Public Company's stock, will normally change the name of the Public Company (often to its own name), and will appoint and elect its management and Board of Directors.