Types of M&A
HORIZONTAL MERGER
A horizontal merger occurs when companies operating in identical or similar industries merge. The purpose of horizontal mergers is to make more scalable business more efficient, increase market share, and exploit cost and revenue synergies.
CONGLOMERATE
A conglomerate merger is a union between companies operating in different industries and are involved in different / unrelated fields of activity.
purchase
A purchase is when a company buys the majority or all of the shares of another company, in order to gain control in that company.
MERGER BETWEEN COMPANIES FROM DIFFERENT GEOGRAPHICAL AREAS
It is a merger between companies that sell the same product or service, but operate in different geographic markets. The purpose of such a merger is to gain access to a larger market and thus gain a larger portfolio of customers .
MERGER OF PRODUCT EXTENSION
It is a merger between companies that sell similar products or services and operate in the same market.
VERTICAL FUSION
It is a merger between companies operating along the same supply chain. Vertical merger involves merging companies throughout the production and distribution process.