$1.$ What are the common reasons for a private firm to go public? What are the advantages and disadvantages of doing so$?$ Be specific.

$2.$ Discuss the pros and cons of a reverse merger versus an IPO.

$3.$ What is the purpose of a private firm wanting to be listed on a major stock exchange such as Nasdaq?

$4.$ What is a shell corporation? Which firm is the shell corporation $($Versartis or Aravive$)$ in the case study? Why is it misleading to call Versartis the acquirer and Aravive the target firm?

$5.$ What are the auditing challenges associated with reverse mergers? How can investors protect themselves from the liabilities that may be contained in corporate shells?

Answer rating: 100% (QA)

1Common reasons for a private firm to go public Access to capital Going public allows the company to raise funds by selling shares to the public through an initial public offering IPO Liquidity for sh... View the full answer