In case of reverse acquisitions the acquirer is not the entity that obtains control but the entity which economically controls the combined entity. Owner structure, size, profitability and other factors have to be considered to transcend the legal form in order to reflect the economic substance of the transaction. Therefore, this study provides evidence on the characteristics of 8,631 acquirer and target firms focusing on the distinction between the financial ratios of firms involved in reverse and non-reverse acquisitions. The findings suggest that the economic substance that has to be considered to identify the acquirer, particularly in context with reverse acquisitions, is rather complex to determine and so far not reliably done.
