such as a supplier that provides raw materials to a manufacturer. The two companies involved in a vertical merger each provide a different product or service but are at different stages of the production process. However, both companies are needed for the production of the finished good.1 ...
Businesses engage in vertical merger in order to remove inefficiencies in the supply chain. For example, a manufacturer might purchase its distributors and improve profitability by realizing economies of scale in advertising. Another motive for vertical merger is to create a monopoly by integrating ...
It is also known as ‘Vertical Integration’ and can occur either through forwarding integration or backward integration. On the other hand, a horizontal merger, better known as ‘Horizontal Integration,’ consists of the acquisition of companies in the same industry, producing similar goods or serv...
Vertical integration is a similar concept in which a company expands its operations into other phases of the supply chain. However, this can be achieved internally and does not always require a merger of businesses. The opposite of a vertical merger, is a horizontal merger, in which two compan...
Why Vertical Mergers Matter Vertical mergersallow manufacturers to control the entire production cycle by purchasing suppliers and bringing them on as part of the company. This way, manufactures can have control over the cost and production of individual components, resulting in lower cost and greater...
In a vertical acquisition, the companies involved are in the same industry, such as food production or energy. But unlike a horizontal acquisition, they are at different stages of the production cycle. The reasons for vertical acquisitions (also known asvertical integration) are the same as those...
a For its part,the Antitrust Division has stepped up enforcement in the past year in vertical mergers, which historically have received less scrutiny than combinations between competitors. For example, the Ticketmaster and Live Nation merger had significant vertical dimensions in the live entertainment...
Merger Arbitrage What is Merger Arbitrage? Merger Arbitrageis an investment strategy that seeks to profit from the uncertainty that exists during the period between when an acquisition is announced and when it is formally completed. Merger Arbitrage: Microsoft Acquisition of LinkedIn...