What is a Reverse Triangular Merger?
A reverse triangular merger is a merger in which the acquisition is carried out by a subsidiary of the acquiring company.
How Does a Reverse Triangular Merger Work?
In a reverse triangular merger, a subsidiary of the acquiring company executes the purchase of the target company. When this occurs, the stock of the target company merges with the purchasing subsidiary of the acquiring company. The acquiring company, subsequently, also wholly owns the target company. The target company's shareholders now receive equity in the acquiring company. This is called a reverse triangular merger because of the three parties involved: the acquiring company, the purchasing subsidiary of the acquiring company, and the target company.
Why Does a Reverse Triangular Merger Matter?
The dynamics of a reverse triangular merger are effective for successful acquisitions where regulatory and/or ownership barriers would, otherwise, prevent a merger from occurring.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
Growth, for its own sake, has tripped up many companies -- and investors, for that matter. Every year around this time, financial publications publish their list of...
Read More →
Question: I know I should have a financial plan so that I'm not reacting wildly to market swings. But how should age factor...
Read More →
The biggest mistake investors often make is to focus on a company or an industry while ignoring the broader macro environment...
Read More →
We cringe when credit repair "experts" tell people that they can boost their credit scores by 60 points in 48 hours. The world of credit reporting simply doesn't operate that way – it...
Read More →
Make a list and stick to it. That's one of the best ways to be kind to a budget at the grocery store. You avoid impulse purchases because of hunger or tempting specialty items. But even the...
Read More →
