Use this button to switch between dark and light mode.

Double Dummy Mergers: U.S. Federal Tax Treatment

September 20, 2022 (1 min read)

Double dummy mergers are commonly used in friendly public company acquisitions when the acquiror and target are relatively equal in size. The acquiring corporation usually acquires the target corporation using both stock and cash and, depending on the facts, the double dummy merger can be structured as (1) completely tax-free, (2) partially tax-free, or (3) a taxable purchase. Check out this tax overview of the double dummy merger structure.          

Read Now »

Related Content

  • Tax-Free Acquisitions
    Learn the key structuring and drafting considerations for parties structuring tax-free acquisitions.
  • Taxable Acquisitions
    Discover the reasons why parties may prefer to structure an acquisition as a taxable transaction.

Practical Guidance Updates 
Featuring the latest updates from your Practical Guidance account.  

Experience results today with practical guidance, legal research, and data-driven insights—all in one place.

Experience Lexis+