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...
A vertical merger is the merger of two or more companies that provide different supply chain functions for a common good or service.
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...
Arbitration. All claims and disputes arising under or relating to this Agreement are to be settled by binding arbitration in the state of [insert state in which parties agree to arbitrate] or another location mutually agreeable to the parties. The arbitration shall be conducted on a confidential ...
industry often happen when new technology is introduced that radically alters the production process ormanufacturingof a good or service. These shifts are key drivers in many of the processes that a society undergoes, such as theAmerican Industrial Revolutionor the information revolution since the ...
financial institutionsinvite bidsfor large projects that must be submitted within by a deadline. The word tender can also refer to the acceptance of a formal offer, such as atakeover bid. This form of tendering is the process whereshareholderssubmit their shares in response to a takeover ...
the same prices were applied to everyone. In theory, matching prices to specific areas of a company’s customer base is a great way to maximize profits. However, if such a strategy is not carefully monitored and managed, and the right conditions don’t exist, then it could easily backfire...
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. ...
Warranty liability: Some liabilities aren't as exact as AP. They have to be estimated. Warranty liability is the estimated time and money that may be spent repairing products under the agreement of awarranty. It's a common liability in the automotive industry because many cars have long-term...