The Capital Markets team at PKF advises on a range of specialist transactions including RTOs, Rule 3 and de-listings. If you are expecting to enter into a complex transaction, the team is well placed to help.
An RTO, reverse merger or reverse IPO occurs where the target is larger than the company (usually a public company) looking to acquire it. This type of transaction is commonly used when limited companies want to bypass the IPO process and instead complete an RTO with a shell company already listed. The process can be cheaper than a full IPO but comes with different challenges, such as incumbent shareholders and accounting treatment.
The subsequent accounting for these transactions departs from the normal business combination accounting standard (IFRS 3) and can be complex. We have acted for several companies who have completed this process and therefore are well placed to advise you.
We will act as Rule 3 advisors to companies in an acquisition process where the Takeover Panel requires it. We offer practical and independent advice and assess any offers to ensure that you as the target are getting a fair deal.
If you have decided that your company should be taken private again, then the team will help to smooth the process. We work hand in hand with your legal team to ensure any tax implications or solvency issues are dealt with. Our expert Company Secretarial team has a wealth of knowledge and can provide expertise in respect of company filings or restructures under UK law.