In a merger, all but one of the combining firms ceases to exist as a legal entity.

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In a merger, the combining firms come together to form a single legal entity, and all but one of the original firms cease to exist as separate legal entities. This is why mergers are sometimes referred to as "absorptions." The surviving entity retains the name and legal structure of one of the original firms, while the others are dissolved.

In a Merger, All but One of the Combining Firms