Meaning & use
reverse takeover
Last updated
Meaning
nouncountablebusinessfinance
a business deal in which a smaller company buys a larger one, often to get a stock market listing
Grammar: Countable: a reverse takeover, two reverse takeovers.
Patterns
- a reverse takeover of something
- by reverse takeover
The small tech firm completed a reverse takeover of the larger retailer.
Investors watched the reverse takeover closely because it would give the startup a public listing.
A reverse takeover can be a faster way to go public than a traditional IPO.
Word forms
| plural | reverse takeovers |
|---|
Common combinations
- complete a reverse takeover
- The company completed a reverse takeover last year.
- reverse takeover of a company
- The reverse takeover of the larger firm surprised analysts.
- reverse takeover deal
- The reverse takeover deal was announced on Monday.
Synonyms and how they differ
- backdoor listing
- Backdoor listing is a broader term for getting listed without a traditional IPO; a reverse takeover is one common way to do it.
Word family
- takeover noun
- the act of taking control of a company by buying enough shares
- take over phrasal verb
- to gain control of a company or organization
Commonly confused: reverse takeover or takeover?
reverse takeover vs takeover
A takeover is when one company buys another; a reverse takeover is the opposite—a smaller company buying a larger one, often to get a listing.
Practice
In a reverse takeover, which company is usually the buyer?
Choose one answer.
In a reverse takeover, the smaller company typically buys the larger one, often to gain a stock market listing. The larger company is the one being acquired, not the buyer.
Make it your own
Write a sentence using “reverse takeover”, then check it and compare it with the examples above.