Forward Triangular Merger
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Definition of 'Forward Triangular Merger'
A type of merger that occurs when the subsidiary of the acquiring corporation merges with the target firm.
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Investopedia explains 'Forward Triangular Merger'
In a forward triangular merger, the subsidiary's equity merges with the target firm's stock. As a result of the merger, the target becomes a part of the original subsidiary of the acquirer. This form of acquisition is often used for regulatory reasons.
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