Series 79 practice questionmediumMerger Types
In a reverse triangular merger, which entity survives as a subsidiary post-transaction?
- AThe target company✓ Correct answer
- BThe acquirer's merger subsidiary
- CThe acquirer parent
- DA new holding company created for the merger
Explanation
Why A — The target company
In a reverse triangular merger, the merger sub merges into the target, which survives as a subsidiary of the acquirer. Confusing this with a forward triangular merger is a common error.
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