Types of Mergers and Acquisitions

Depending on the nature of the integration of the companies identify the following types of Mergers and Acquisitions: 1. Horizontal merger firm. This is nothing but a combination of two companies offering the same products. Benefits seen with the naked eye: increased opportunities for development, is on the wane and competition, etc. 2. Vertical Merger Company is a connection of a number of companies of which is a supplier of raw materials for another. Then, rapidly declining production costs, and there is a rapid increase in profits. 3. Generic (parallel) a merger – a consortium of companies producing related products. For example, a company producing cameras, combined with a firm producing a film.

4. Conglomerate (circular) merger – a consortium of companies unrelated to any manufacturing or sales relationships, which is a merger of this type – a merger of one company by another branch of industry, is neither the supplier nor the consumer nor a competitor. 5. Reorganizing Ltd – in other words, an association of companies involved in various business fields. On analytical calculations, in the world each year is about fifteen thousand of deals on Mergers and Acquisitions. Logically, then, that investors seek to preserve and stabilize the direct control over the use of their finances. The best option for this is directly involved in managing the company.

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    Published by: admin on March 19th, 2011 | Filed under Reviews



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