reverse acquisition

(redirected from Reverse Acquisitions)
Also found in: Financial.

reverse acquisition

Mentioned in ?
References in periodicals archive ?
1502-75(d) (3), This item focuses on tax implications of reverse acquisitions and reviews recent private letter rulings in which the IRS applied substance-over-form principles.
Generally, a reverse acquisition occurs when a larger corporate group or corporation (by reference to fair market value) is acquired by a member of a smaller group or corporation.
The company operates through the three business areas financial consulting, investment and reverse acquisitions.
Many of the firms currently listed on Korea's stock exchanges went public through reverse acquisitions and backdoor listings in 2005 and 2006, when an Asia-wide burst of interest in Korean pop culture infected investors.
The implementation guidance provides examples of how to account for different business combinations and explanations of topics, such as definition of a business; measuring the fair value of the acquiree; intangible assets; illustration of disclosure requirements; and reverse acquisitions.
Thus, taxpayers confront temporary rules requiring stock basis and earnings and profits adjustments following reverse acquisitions and similar transactions, and a raft of proposed regulations involving subjects such as SRLY losses, investment adjustments, earnings and profits, and excess-loss accounts.
The chapter also delves into the implications of reverse acquisitions (where a large corporate group is taken over, in form, by a member of a smaller group, but the shareholders of the larger group obtain a controlling interest in the smaller group).
14) Examples of reverse acquisitions include IRS Letter Rulings 8849044 (9/12/88), 8914027 (1/4/89), 9016036 (1/19/90) and 9042037 (7/23/90).
Assume that the transaction is not a reverse acquisition.
1502-32T); and (c) new reverse acquisition and intragroup restructuring rules aimed primarily at potential abuses when an affiliated group has a new common parent (Temp.
The principal transaction covered by the new regulations involves a new holding company where the group remains in existence because the transaction is a reverse acquisition under Treas.