Reverse triangular merger

(redirected from Reverse Triangular Mergers)

Reverse triangular merger

Reverse Triangular Merger

In mergers and acquisitions, a situation in which a company is acquiring a publicly-traded target company and, in the process, a subsidiary of the acquiring company merges with the target company. When this occurs, the equity of the subsidiary is reflected in the target company's stock. The result makes the target company a wholly owned subsidiary, and shareholders in the target company instead receive shares in the acquiring company. Reverse triangular mergers occur when regulations or contracts require that certain assets not change hands.
References in periodicals archive ?
351 exchanges, certain reverse triangular mergers, and certain triangular reorganizations involving foreign corporations.
81-70's use was expanded to apply to certain reverse triangular mergers under Treas.
Taxpayers previously involved in tax-free stock-for-stock exchanges qualifying as either a "B" reorganization or a reverse triangular merger could be significantly affected by the IRS's final word on basis study computation.
368(a)(1)(C)), and forward or reverse triangular mergers under Sec.
For this purpose reverse triangular mergers under See.
98-10 is consistent with the regulations governing reverse triangular mergers.
However, forward and reverse triangular mergers are less flexible than straight mergers.
368(a)(2)(C)), or to permit forward and reverse triangular mergers (Sec.

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