Series 79 practice questionmediumMerger Types
In a forward triangular merger, which entity survives and assumes the target's assets and liabilities?
- AThe target company
- BThe acquirer’s parent company
- CThe acquirer’s subsidiary✓ Correct answer
- DA newly created holding company
Explanation
Why C — The acquirer’s subsidiary
In a forward triangular merger, the acquirer’s subsidiary survives and absorbs the target’s assets and liabilities. This structure differs from reverse triangular mergers where the target survives.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 995+ Series 79 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related M&A, Tender Offers & Restructuring questions
- Which of the following best describes a common method to resolve post-closing disputes relating to the achievement of…
- A poison pill is designed to prevent hostile takeovers primarily by:
- Which anti-takeover defense involves the target company selling valuable assets to make itself less attractive to an…
- A merger agreement provides the buyer the right to match any superior proposal received by the target before accepting…
- Under SEC rules, when a tender offer is made, which document must the target file to communicate its position and…
- A sponsor is evaluating an LBO of a target with $200 million EBITDA and 4x net debt/EBITDA. Senior lenders offer debt…
- In an LBO transaction, which of the following typically provides the largest portion of the acquisition financing?
- In a management buyout (MBO) of a public company, which board structure is commonly established to evaluate the…