Series 79 practice questioneasyMerger Types
In a reverse triangular merger, which entity survives after the transaction?
- AThe target’s parent
- BThe acquirer’s parent
- CThe target company✓ Correct answer
- DThe acquirer’s merger subsidiary
Explanation
Why C — The target company
In a reverse triangular merger, the merger subsidiary merges into the target; the target survives as a subsidiary of the acquirer. The correct answer is C.
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