I compare a sample of reverse mergers between 1995 and 2006 with comparable mergers of public firms and acquisitions of public targets by private firms. I find that reverse merger and going private transactions target firms with different characteristics. The short horizon stock price performance upon announcement of reverse mergers is correlated with the termination fee and time to effectuate the transaction. Finally, consistent with prior research, reverse mergers result in long-run stock price underperformance. However, the magnitude of this underperformance is small and it is not accompanied by significant operating underperformance.