Series 79 practice questioneasyMerger Types
Which merger structure is typically used to preserve the target’s contracts and permits while minimizing the acquirer’s exposure to legacy liabilities?
- AReverse triangular merger✓ Correct answer
- BDirect asset purchase
- CStatutory merger
- DForward triangular merger
Explanation
Why A — Reverse triangular merger
A reverse triangular merger preserves target contracts and permits as the target survives, limiting acquirer liability. Trap answers confuse asset purchase (which often needs contract assignments) and statutory mergers.
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