Double Dummy Merger (M&A Glossary)

Summary

A merger structure comprised of a newly created holding company with two subsidiaries, with one subsidiary merging into buyer as the survivor and the other subsidiary merging into target as the survivor. The goal of this structure is to keep the stock portion of the deal’s consideration tax-free. This may be a desirable structure for a merger of equals because it avoids the appearance of one company being acquired by the other.