What is a merger subsidiary?

A subsidiary formed by a party for purposes of effecting a form of indirect merger, such as a forward triangular merger or reverse triangular merger. In a forward triangular merger, the target company is merged with and into the acquiror’s merger subsidiary.

What are the four types of mergers?

A merger occurs when two companies combine into a single new business. The owners of the original entities continue to be the owners of the merged entity. There are four types of mergers, which are vertical mergers, horizontal mergers, market extension mergers, and consolidations.

What is Congeneric merger?

A congeneric merger is a type of merger where two companies are in the same or related industries or markets but do not offer the same products. In a congeneric merger, the companies may share similar distribution channels, providing synergies for the merger.

What is an interspecies merger?

Interspecies Mergers: Mergers involving “other business entities” in which one or more. California corporations, limited liability companies, limited partnerships, or partnerships is a party to the merger.

What is a subsidiary merger?

A subsidiary merger is a type of merger that occurs when the acquiring company uses its subsidiary company to acquire a target company. The acquirer may create a subsidiary company or use one of its existing subsidiary companies to execute the merger and acquisition transaction.

What is the percentage of ownership of a subsidiary?

The subsidiary usually owned by the parent or holding company from 50% up to 100%. If the Parent company owned less than 100% of the total share, it is called Partially own subsidiary. Fully own subsidiary is the company that parent-owned 100% of the total share.

What is a wholly owned subsidiary?

A wholly owned subsidiary is a company whose common stock is 100% owned by another company, the parent company. Whereas a company can become a wholly owned subsidiary through an acquisition by the parent company or having been spun off from the parent company, a regular subsidiary is 51% to 99% owned by the parent company.

What is a reverse triangular subsidiary merger?

A reverse triangular subsidiary merger begins when an acquiring entity uses its subsidiary to acquire another company. After the acquisition, the subsidiary is absorbed into the acquired company, and the buyer (the parent company) becomes the only shareholder.