A reverse takeover takes place when a privately owned company acquires a controlling interest in a publicly traded company, allowing the private company to become publicly traded without going through the Initial Public Offering (IPO) process. This method is faster and less costly than an IPO. The public company can be a listed company or an unlisted public company. Ideally, the private company identifies a public company, often a shell corporation, with few assets or insignificant operations, that has a listing, but the listing is not required. After the transaction, the public company's business is' replaced by the private company's operations. Using a reverse takeover, a private company can go public without having to raise capital. The disadvantage is that the public company may have hidden pre existing debts or liabilities, including the threat of litigation that the private 'company must assume or resolve. Reverse takeovers are subject to regulatory approval and the approval of the public company's shareholders.

Direct Listing - Direct Public Offerings

Blank Check Company

Unregistered Securities