Investopedia

Continue to Site »

Reverse Triangular Merger

Filed Under »
Dictionary Says

Definition of 'Reverse Triangular Merger'

The formation of a new company that occurs when an acquiring company creates a subsidiary, the subsidiary purchases the target company and the subsidiary is then absorbed by the target company. A reverse triangular merger is considered to be simpler to accomplish than a direct merger because the subsidiary only has one shareholder - the acquiring company. Another advantage of a reverse triangular merger is that the acquiring company is able to obtain control of the target's non-transferable assets and contracts. This is not always possible with a forward triangular merger.
Investopedia Says

Investopedia explains 'Reverse Triangular Merger'

Reverse triangular mergers, like direct mergers and forward triangular mergers, can be either taxable or nontaxable depending on how they are executed and other complex factors set forth in Section 368 of the Internal Revenue Code. If nontaxable, a reverse triangular merger is considered a reorganization for tax purposes.

Articles Of Interest

  1.

    Mergers And Acquisitions: Understanding Takeovers

    In the dramatic world of M&As, battleground terms meld with bizarre metaphors to form the language of the game.

  2. The Merger - What To Do When Companies Converge

    Learn how to invest in companies before, during and after they join together.

  3. Key Players In Mergers And Acquisitions

    Strategic acquisition is becoming a part of doing business. Discover the different types of investor groups involved.

  4. Mergers & Acquisitions: An Avenue For Profitable Trades

    When major corporate transactions have a big impact on the currency markets, you can benefit.

  5. A Guide To Spotting A Reverse Merger

    This corporate action can be profitable for investors who know what to look for.

  6. The Basics Of Mergers And Acquisitions

    Learn what corporate restructuring is, why companies do it and why it sometimes doesn't work.

  7. Warding Off Hostile Takeovers

    The purpose of this article is to provide a general overview of hostile corporate takeovers, while highlighting a general course of action against such activity. This article provides basic ...

  8. Dominion Diamond Goes Shopping - Should You?

    These are exciting times in diamond mining, is it time to buy?

  9. Verizon, AT&T And Vodafone – Here We Go Again

    A popular rumor gets new life with word that AT&T may help Verizon facilitate a buyout of Vodafone.

  10. Buffett And Goldman Sachs Do Sweetheart Deal

    Goldman Sachs announced March 26 that it will issue to Berkshire Hathaway in October the number of shares equal to Warren Buffett's profit from the 2008 warrants he got to purchase 43.5 million ...
comments powered by Disqus
Marketplace
Hot Definitions

  1. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

  2. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  3. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  4. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  5. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  6. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.
Trading Center
Array ( )
taggroups(for debug only):
Array ( [0] => Markets [1] => Stocks )