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in this video were going to talk about the reverse triangular merger which is a type a tax-free reorganization so lets say that youre the director of a corporation called amazing animals that runs retirement homes for animals and you decide that you want to acquire another firm called turtles and things that want runs a retirement home specifically for turtles and snakes and so forth so you want to acquire this this company but maybe they have a lot of liabilities or contingent liabilities that you dont want any part of is you dont want them to be part of your organization so what you do is you say okay well Ive got an idea youve got a subsidiary so youve got a subsidiary and this is a subsidiary of amazing animals lets say that the subsidiary is called animal heaven so you have the subsidiary and you can create the sub city or if its an existing subsidiary doesnt matter you have this subsidiary and what youre gonna do is youre gonna acquire Turtles and things that is ama
