A reverse triangular reorganization requires that the target shareholders receive voting stock of the acquiring corporation.

Question

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In a reverse triangular reorganization, the acquiring company sets up a subsidiary that merges with the target company. The target company shareholders receive shares in the subsidiary, which is then merged with the acquiring company. As a result, the target company shareholders receive voting stock of the acquiring corporation.

A Reverse Triangular Reorganization Requires That the Target Shareholders Receive