Mergers/Consolidations

Question 1

Acquisition of stock

Answer 1

Acquirer takes capital stock of the other entity and it becomes the parent company. No new entity created.

Question 2

Acquisition of assets

Answer 2

Acquirer takes possession of assets of other entity. No new entity created.

Question 3

Statutory merger

Answer 3

Acquirer completely takes over the other entity and the second entity ceases to exist. No new entity created.

Question 4

Statutory consolidation

Answer 4

Two entities merge into a new entity. The two original entities cease to exist. One new entity created.