Series 79 practice questionmediumMerger Types
In a forward triangular merger, which entity typically acquires the target’s assets and liabilities?
- AThe parent company of the acquirer
- BThe acquirer’s subsidiary✓ Correct answer
- CThe target company itself
- DA joint venture between acquirer and target
Explanation
Why B — The acquirer’s subsidiary
In a forward triangular merger, the acquirer forms or uses a subsidiary to merge with the target, and the subsidiary survives, acquiring assets and liabilities. Confusing the parent company with the subsidiary is a common mistake.
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