Why do you want to go through the subsidiary when you merge? For example, triangular mergers and acquisitions

Triangle M&A refers to the acquisition of Company A to set up a subsidiary or holding Company B, and then merging the target company C through Company B..

At this time, the shareholders of Company C hold the shares or shares of Company B, so Company A is not liable for the debts of Company C, and Company B is liable. A's investment in company B is symbolic, and the capital can be very small. The purpose of its establishment is to buy companies, not to run them. Adopting triangle merger and acquisition can avoid the tedious procedure of shareholder voting, and the board of directors of company A has the right to decide the merger and acquisition of company B, which is simple and quick.

In short, A uses triangle merger to avoid the debt of Company C ... Because B is an empty shell, the risk will be small.

At the same time, triangular mergers and acquisitions can also simplify procedures.

If it helps you, please adopt it. Thank you.