Series 79 practice questioneasyMerger Types
In a triangular merger, who becomes the surviving entity?
- AThe original target company
- BThe parent company of the acquirer
- CThe acquisition subsidiary created by the acquirer✓ Correct answer
- DA special purpose vehicle formed by the target
Explanation
Why C — The acquisition subsidiary created by the acquirer
In a typical forward triangular merger, the acquirer's subsidiary merges with the target, and the subsidiary survives, often making integration simpler. Misidentifying the surviving entity can cause confusion regarding liabilities and operations.
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