what is a reverse merger 
a reverse triangular merger isn t the same as a reverse merger a reverse merger occurs when a private company acquires control of a public company this effectively enables the private company to become a publicly traded one without having to go through the expensive ordeal of an initial public offering ipo the bottom linea reverse triangular merger is a mergers and acquisitions m a strategy that involves a company forming a subsidiary or shell company to purchase another company once the transaction is complete the subsidiary will merge with the acquired company and then be dissolved leaving just the newly acquired company as the subsidiary this strategy is popular for several reasons other than potential tax benefits reverse triangular mergers are also easier to get past shareholders and can offer greater continuity 