Merger White Paper Companion Document

Statutory Mergers, Combinations, and Reorganizations

There is a significant difference between a statutory merger under the Internal Revenue Code (IRC), and the countless possibilities along the mergers and acquisitions spectrum that may not fall, technically, under the IRS’s definition of a merger, consolidation, reorganization, or tax-free exchange. For this reason, it is important to understand the basic details of the formal merger process to know which questions to ask and to understand the range of possibilities.

In this special supplement to our white paper, Mergers: A Focus on the 'M' in 'M&A,' we focus on acquisitive tax-free reorganizations, and not on “divisive" transactions in which a company is split apart, because the former is the most common and practical solution set for the vast majority of financial advisors interested in this process.

We break down three types (and subtypes) of reorganizations/ mergers including:

  • Statutory mergers
  • Statutory consolidations
  • Stock for stock reorganizations
  • Stock for asset reorganizations

Download this free white paper supplement to learn more about these types of business reorganizations, including detailed explanation and stock/asset ownership illustrations.