Home Knowledge Mergers & Acquisitions in the US Deal Structures Variations - Reverse Triangular Merger

Reverse Triangular Merger

A reverse triangular merger is essentially the same as a direct merger, except that the Acquisition Subsidiary is merged into the Target.  This structure has the same advantages and disadvantages as a direct merger.  It also has the additional advantage of being simpler to affect, because the Buyer is the sole shareholder of the Acquisition Subsidiary, making shareholder approval easier to obtain.  The choice of which company (the Acquisition Subsidiary or the Target) should be the Surviving Company can be dictated by brand recognition, tax considerations or any other commercial factor the parties deem important.


reverse triangular merger 2

(For a larger view, click on the graphic)

About Us

The Cross Border Management website is maintained by Cross Border Management, LLC and provides the most comprehensive information on the Internet about foreign entities doing business in the United States. It is aimed at foreign business owners, managers and investors with current or potential operations, customers, suppliers or investments in the US. The site is totally free of charge.

Legal Disclaimer

This web site is a general service that provides business information.  Cross Border Management LLC is not a law firm and the information contained in this site should not be construed as legal advice or legal information.  You should always consult an attorney before engaging in any commercial or business activity.