What does reverse absorption merger mean?
General absorption merger refers to the parent company's absorption merger of subsidiaries, and reverse absorption merger refers to the parent company's acquisition of subsidiaries. Then the loans and equity of private equity funds to the parent company will sink to the level of subsidiaries and become the share of private equity funds held by special plans. The private equity fund holds 0/00% equity of the subsidiary/kloc, and the private equity fund also has a loan creditor's right to the subsidiary.