1. Horizontal merger: A horizontal merger occurs when two companies that produce similar products or services and operate in the same industry or market segment merge together. The goal of a horizontal merger is often to increase market share, reduce competition, and achieve economies of scale.
2. Vertical merger: A vertical merger involves two companies in the same industry but at different stages of the supply chain. For example, a manufacturer merging with a distributor or a retailer. The main goal of a vertical merger is to streamline operations, increase efficiency, and control costs.
3. Congeneric merger: A congeneric merger involves two companies that are in related but different industries. These companies may have complementary products or services that can be bundled together to offer a more comprehensive solution to customers. The goal of a congeneric merger is often to expand the product offerings and diversify the customer base.
4. Conglomerate merger: A conglomerate merger occurs when two companies in completely unrelated industries merge together. The main goal of a conglomerate merger is often to diversify risk, expand into new markets, and take advantage of new opportunities for growth.
The four types of mergers are the (1) horizontal merger, (2) vertical merger, (3) congeneric
merger, and (4) conglomerate merger
1 answer
1 answer