Reverse Triangular Merger

What does it Mean? When the subsidiary of the acquiring corporation merges with the target firm. In this case, the subsidiary's equity merges with the target firm's stock. As a result of the merger, the target would become a wholly-owned subsidiary of the acquirer and shareholders of the target would get shares of the acquirer.
 
Investopedia Says... This form of acquisition is often used for regulatory reasons.

Terms Related Links

Acquisition
Forward Triangular Merger
Merger
Target Firm

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