reverse acquisition

(redirected from RTO)
Also found in: Dictionary, Medical, Acronyms, Encyclopedia, Wikipedia.

Reverse Acquisition

An act where a private company purchases a publicly traded company and shifts its management into the latter. It also normally involves renaming the publicly traded company. This allows private companies to become publicly traded while avoiding the regulatory and financial requirements associated with an IPO. In order for a reverse acquisition to happen smoothly, the publicly traded company is usually a shell corporation, that is, one with only an organizational structure and little or no activity. The two businesses can then merge the private company's product(s) with the public company's structure. It also makes initial trading less dependent on market conditions, a key risk in IPOs. However, it is important to note that a reverse acquisition only provides the private company with more liquidity if there is a real market interest in it.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

reverse acquisition

An acquisition in which the company taken over becomes the surviving entity. A reverse acquisition is sometimes used to acquire and convert a private company into a public company without being required to go through a lengthy registration process.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Badshah Khan Wazir has been posted as chief legal wing of the FBR, Amjad Zubair Tiwana has been posted out of the FBR headquarters and made commissioner at RTO Islamabad.
To further ensure plant uptime, a modular approach should be considered, since such a system will utilize smaller RTOs grouped together acting in concert with each other as opposed to a single, "large-scale" RTO, handling the full exhaust volume.
Recommendation: To provide a foundation for FERC to evaluate the effectiveness of its decision to encourage the creation of RTOs and help Congress, industry stakeholders, and the public understand RTO performance and net benefits, the Chairman of FERC should report the performance results to Congress and the public annually, while also providing interpretation of (1) what the measures and reported performance communicate about the benefits of RTOs and, where appropriate, (2) changes that need to be made to address any performance concerns.
It is the duty of every co-op director, manager and senior cooperative staff person to understand as much as possible about what drives those costs so that they can make informed decisions about transmission and RTO membership and be able to communicate with members about the results of those decisions.
The model developed by Walden (1990) focuses on the implicit rate-of return earned by an RTO dealer-owner on a specific agreement.
RTO Hyderabad's income tax contribution was Rs12.7 billion where withholding tax contribution was 83%.
culture of Regional Tax Office (RTO) Peshawar and strict directives have been issued to officers concerned for delivering proper service to people,' he added.
The FBR collected an amount of Rs 42 million through RTO-II Lahore and Rs 19.430 million from Multan RTO and Rs 4.422 million through Peshawar RTO.
An increase of 26 percent has been recorded in the collection during the first four months of the fiscal year as compared to the previous year, statistics of RTO show.
Summary: Shahdol (Madhya Pradesh) [India], Aug 20 (ANI): The Regional Transport Officer (RTO) of Shahdol Ashutosh Bhadoriya on Monday received a death threat from an anonymous person through a letter.
In a major move to facilitate registered taxpayers, the Federal Board of Revenue (FBR) has empowered Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs) to assign/mark jurisdiction of taxpayers at local level.