Daryl Yurek Bolder Venture Partners

Founded by Daryl Yurek
Founded by Daryl Yurek

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Reverse Take Over (RTO)

Reverse Take Over (RTO)

An alternative to an initial public offering (IPO) for private companies to become publicly traded is through a process known as a reverse takeover (RTO). This involves the private company acquiring enough shares to gain control of a publicly-traded company and exchanging its shares for those of the public company, effectively becoming a publicly-traded entity. A reverse takeover may also be called a reverse merger or a reverse IPO. While RTOs can be faster and less expensive than IPOs, they may be vulnerable to weaknesses in management and record-keeping. Additionally, foreign companies may utilize RTOs to gain entry into the U.S. market. Money can be raised 2 ways once the takeover is complete. The publicly traded target company may have money and if so that money becomes available to the takeover company. The second way is to retain an investment bank and have them find public investors.

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