Series 79 practice questionmediumMerger Types
Which type of merger is often used by a private company to become publicly traded without a traditional IPO?
- AReverse merger✓ Correct answer
- BForward triangular merger
- CStatutory merger
- DHorizontal merger
Explanation
Why A — Reverse merger
A reverse merger allows a private company to become public by merging into an existing public shell. Confusing the structures could result in misadvising on routes to public markets.
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