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 i
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...
A vertical merger is the merger of two or more companies that provide different supply chain functions for a common good or service.
Pareto analysis is a decision-making tool premised on the idea that 80% of a project’s benefit can be achieved by doing 20% of the work—or, conversely, 80% of problems can be traced to 20% of the causes. In other words, it posits that not all inputs have the same or even pro...
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...
What Is a Stock-for-Stock Merger? A stock-for-stock merger occurs when shares of one company are traded for another during anacquisition. Shareholders can trade the shares of the target company for shares in the acquiring firm when and if the transaction is approved. These transactions are ty...
In legal language, a novation is a transfer of "the benefits and the burdens" of a contract to another party. Contract benefits may vary. For example, the benefit could be payments for services. The burdens are the obligations taken on to earn the payment—in this example, the services. ...