A horizontal merger is a type of business merger in which the two companies are involved in the production of the same types of...
Home›Finance›Mergers and Acquisitions›What is a Horizontal Merger? Definition:A horizontal merger, also known as horizontal integration, is the combination of two companies that compete in the same or in a similar industry. In other words, it occurs when one company buys out its competito...
Once a horizontal acquisition is complete, thetarget firm'sidentity is usually dissolved and it becomes part of the acquirer. The business operations don't change after the deal is complete. Shares of the target firm are dissolved if it is public and itsshareholdersmay receive cash or stock in...
What is the difference between a horizontal merger and a vertical merger? What is horizontal communication? What is an integrated position? What is the differentiation approach? What is the J-curve? What is the difference between vertical and horizontal alliances?
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...
What Is Horizontal Consolidation? What is a Corporate Merger? What is Merger Control? What is Badwill? What is a Pure Play? What is Cost Synergy? What is a Merger Clause? Discussion Comments Take the Quiz WiseGeek, in your inbox
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Types of Horizontal Integration There are three primary forms of horizontal integration: mergers, acquisitions, and internal expansions. Merger When two companies merge, two separate entities create a new, joint organization. The brand of one of those two companies is usually retained, though the com...
Exxon-Mobil is an example of a horizontal merger, where two companies that used to compete with similar products come together. Another type is a vertical merger, when two companies whose business complements each other merge. A bottler merging with a soda company is an example. A ...
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