Explain various types of mergers with the help of an example.
Answers
Explanation:
Types of Mergers
There are five basic categories or types of mergers:
Horizontal merger: A merger between companies that are in direct competition with each other in terms of product lines and markets
Vertical merger: A merger between companies that are along the same supply chain (e.g., a retail company in the auto parts industry merges with a company that supplies raw materials for auto parts.)
Market-extension merger: A merger between companies in different markets that sell similar products or services
Product-extension merger: A merger between companies in the same markets that sell different but related products or services
Conglomerate merger: A merger between companies in unrelated business activities (e.g., a clothing company buys a software compan
Answer:
A merger refers to an agreement in which two companies join together to form one company. In other words, a merger is the combination of two companies into a single legal entity. In this article, we will look at different types of mergers that companies can undergo.
Explanation:
There are five basic categories or types of mergers:
Horizontal merger: A merger between companies that are in direct competition with each other in terms of product lines and markets
Vertical merger: A merger between companies that are along the same supply chain (e.g., a retail company in the auto parts industry merges with a company that supplies raw materials for auto parts.)
Market-extension merger: A merger between companies in different markets that sell similar products or services
Product-extension merger: A merger between companies in the same markets that sell different but related products or services
Conglomerate merger: A merger between companies in unrelated business activities (e.g., a clothing company buys a software company)