Series 79 practice questionmediumMerger Types
In a reverse triangular merger, which party typically issues the merger consideration to the target's shareholders?
- AThe target's own subsidiary
- BThe acquirer's parent company✓ Correct answer
- CThe surviving subsidiary
- DThe target company's board of directors
Explanation
Why B — The acquirer's parent company
In a reverse triangular merger, the acquirer parent typically supplies the cash or issues its shares used as merger consideration; the merger subsidiary merges into the target and disappears. Thus B is the best answer as written.
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