So what are the advantages of reverse takeovers, and are we likely to see more in the future?
As well as the normal advantages of any acquisition such as synergies and costs savings, a reverse takeover will always have significant commercial advantages.
For instance, in relation to the Cains transaction, the intention to supply Cains products in hundreds of pubs managed by Honeycombe Leisure is a clear commercial advantage.
In relation to the Eddie Stobart transaction, the ability of Eddie Stobart to provide alternative modes of transport to its customers whether by rail, canal or sea in an environmentally friendlier way is a clear commercial advantage.
A reverse takeover also provides the private business with the advantages of a Stock Market listing such as in relation to profile and access to public equity markets.
In relation to the Cains transaction, a placing to raise additional investment was secured which would not have been available to Cains as a private business.
Where a reverse takeover opportunity is available, the attractions in terms of business rationale and deal rationale make it compelling compared to other options.
However, circum- stances where reverse takeovers are suitable will continue to remain relatively rare.
JONATHAN BROWN is a corporate partner at Halliwells.