Question:medium
In ________________ acquisition, a public company is taken over by a private company.
In ________________ acquisition, a public company is taken over by a private company.
Show Hint
Reverse Acquisition = Private company takes over public company.
Think: “Reverse” = switching from private to public status quickly.
Updated On: Jan 14, 2026
- Friendly
- Reverse
- Backflip
- Hostile
Show Solution
The Correct Option is B
Solution and Explanation
A Reverse Acquisition (or Reverse Merger) is when a private entity acquires a public one, enabling the private entity to become publicly traded without the extensive initial public offering (IPO) procedure.Additional Transaction Types:
Friendly Acquisition: A merger where both companies consent.
Backflip Acquisition: The acquiring entity becomes a subsidiary of the target entity.
Hostile Acquisition: An acquisition pursued without the target company's management approval.Therefore, option (B) Reverse is the correct designation.
Friendly Acquisition: A merger where both companies consent.
Backflip Acquisition: The acquiring entity becomes a subsidiary of the target entity.
Hostile Acquisition: An acquisition pursued without the target company's management approval.Therefore, option (B) Reverse is the correct designation.
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