A form of corporate acquisition that is structured by combining the purchased company with the acquirer (or its acquisition subsidiary) so that they constitute one legal entity. Sometimes the target merges with the acquirer or its subsidiary, and the target is the surviving legal entity. In other cases, the acquirer or its acquisition subsidiary is the surviving legal entity in a merger. Whether or not the deal is structured as a tax-free reorganization will affect the tax treatment
of any new shares of the acquirer's stock that you receive in exchange for your old shares. Compare acquisition.