Reverse acquisition is an acquisition where the acquirer is the entity whose equity interests have been acquired and the issuing entity is the acquiree. This might be the case when, for example, a private entity arranges to have itself ‘acquired’ by a smaller public entity as a means of obtaining a stock exchange listing.
Reverse acquisition is specifically discussed in IFRS 3 Business Combinations.
Source: Glossary of Terms of IFRSs as at 31 December 2008.
