Reverse Triangular Merger

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Dictionary Says

Definition of 'Reverse Triangular Merger'

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

Investopedia explains 'Reverse Triangular Merger'

This form of acquisition is often used for regulatory reasons.

Related Definitions

  • Acquisition

    A corporate action in which a company buys most, if not all, of the target company's ownership stakes in order to assume control of the target firm. Acquisitions are often made as part ...
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  • 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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  • Merger

    The combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stock.
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    • Target Firm

      A company which is the subject of a merger or acquisition attempt. A takeover attempt can take on many different flavors, depending on the attitude of the target firm toward the ...
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