Tax free reorganizations generally require that all or substantially all of the target company's assets or shares be acquired in order to ensure that the acquiring firm has a continuing ownership interest in the combined firms.

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Tax free reorganizations typically require the acquiring firm to acquire all or substantially all of the target company's assets or shares in order to qualify for tax-free treatment under the Internal Revenue Code. This ensures that the acquiring firm has a continuing ownership interest in the combined firms following the reorganization.

Tax Free Reorganizations Generally Require That All or Substantially All