Does De Facto Merger require that the the seller pay the buying using his own stcok or does the payment method not mater?


Wikipedia said " still have entirely different factors when deciding if a transaction is a de facto merger. [8]


(1) continuity of ownership [or continuity of shareholders].....

other sources on the internet say like " continuity of ownership resulting from the seller being paid with buyer's stock"

My question is if being paid with buyer's stock is required or is this just a common occurrence in de facto cases but not always required. Is the true test common owners?

1 Answer

  • 7 months ago

    REQUIRED to be with its own stock for the de facto merger standard to ... My position is the method of payment is not relevant. ... The general rule, of course, is that a buyer of assets is not liable for the

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