Question:
Identify the type of acquisition in which the purchasing company becomes a subsidiary of the purchased company.
Identify the type of acquisition in which the purchasing company becomes a subsidiary of the purchased company.
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In reverse acquisition, the purchasing company becomes a subsidiary of the purchased company.
Updated On: Apr 29, 2025
- Back flip acquisition
- Reverse acquisition
- Hostile acquisition
- Friendly acquisition
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The Correct Option is B
Solution and Explanation
A reverse acquisition occurs when a smaller company acquires a larger one, with the result being that the purchasing company becomes a subsidiary of the acquired company.
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