Reverse IPO vs Traditional IPO: Which is Right for You?
# Reverse IPO vs Traditional IPO
Choosing the right path to a public listing is one of the most consequential decisions a company can make. Both routes offer distinct advantages and challenges.
## Traditional IPO
The classic route involves hiring underwriters, conducting extensive due diligence, filing a prospectus, and running a roadshow to institutional investors. The process typically takes 12-18 months and can cost €500,000 to €2 million or more in fees.
**Advantages**: Maximum capital raised, highest profile, widest investor base.
**Disadvantages**: Long timeline, high cost, significant market dependency, risk of postponement.
## Reverse IPO via Shell Company
A reverse IPO involves merging your operating company with an already-listed shell company. This bypasses much of the regulatory and marketing burden of a traditional IPO.
**Advantages**: 3-6 month timeline, significantly lower cost, high planning certainty, not dependent on market windows.
**Disadvantages**: Limited initial capital raise, requires finding the right shell.
## Our Recommendation
For mid-sized companies seeking efficient market access, the shell route consistently outperforms on the key metrics that matter: speed, cost, and certainty. Contact INSTANT IPO SE for a personalised assessment.
