The forward triangular cash merger is the most common form of taxable transaction. The target company merges with a U.S. subsidiary of the foreign acquirer with shareholders of the target firm receiving acquirer shares as well as cash, although cash is the predominate form of payment.

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This statement is true. The forward triangular cash merger is a common form of taxable transaction where the target company merges with a U.S. subsidiary of the foreign acquirer, and the shareholders of the target firm receive a combination of acquirer shares and cash, with cash being the most common form of payment.

The Forward Triangular Cash Merger Is the Most Common Form