Series 79 practice questionhardMerger Types
In a forward triangular merger, which entity remains as the surviving company?
- AThe target company
- BThe acquirer’s subsidiary✓ Correct answer
- CThe acquirer’s parent company
- DA newly created holding company
Explanation
Why B — The acquirer’s subsidiary
In a forward triangular merger, the target merges into a subsidiary of the acquirer, and the subsidiary survives. Confusing this structure with reverse triangular or statutory mergers can lead to errors regarding tax and liability outcomes.
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