The disadvantages of the forward triangular merger may include the requirement of the buyer to get shareholder approval.

Question

Quizplus · Accepted Answer

The forward triangular merger does not require the buyer to get shareholder approval as it involves setting up a subsidiary to merge with the target company. This subsidiary is controlled by the buyer and there is no change in ownership. Shareholder approval may be required if the subsidiary issues new shares to finance the merger, but this is not a requirement of the forward triangular merger structure itself.

The Disadvantages of the Forward Triangular Merger May Include the Requirement