Mergers and Acquisitions
Category: Mergers and Acquisitions
Market Extension Merger, Product Extension Merger
Market extension merger and product extension merger are the two basic types of mergers. These two mergers have become very common in the modern day financial market. These have also become very important as more companies are looking at extending the base of their operations as well as the range of products and services they deal in.
Merger Types – Various Type of Merger
A merger refers to the process whereby at least two companies combine to form one single company. Business firms make use of mergers and acquisitions for consolidation of markets as well as for gaining a competitive edge in the industry.
Merger types can be broadly classified into the following five subheads as described below.
They are Horizontal Merger, Conglomeration, Vertical Merger, Product-Extension Merger and Market-Extension Merger.
Horizontal Mergers – Horizontal Integration, Horizontal Monopoly, Horizontal Expansion
About Horizontal Mergers
Certified Mergers and Acquisitions
There are a number of certified mergers and acquisitions advisory programs available at the present time. With the help of these programs, a lot of commercial entities are getting involved in merger and acquisition activities. These programs are offered by numerous merger and acquisition consultants and agencies. Some of them are also conducting educational programs and seminars for the purpose of educating financial professionals about the nuances of certified mergers and acquisitions and growing the knowledge base of the merger and acquisition professionals.
Conglomerate Mergers – Types of Conglomerate Mergers, Benefits of Conglomerate Mergers
As per definition, a conglomerate merger is a type of merger whereby the two companies that merge with each other are involved in different sorts of businesses. The importance of the conglomerate mergers lies in the fact that they help the merging companies to be better than before.
Vertical Mergers – Guidelines on Vertical Mergers
Vertical mergers refer to a situation where a product manufacturer merges with the supplier of inputs or raw materials. In can also be a merger between a product manufacturer and the product’s distributor.
Vertical mergers may violate the competitive spirit of markets. It can be used to block competitors from accessing the raw material source or the distribution channel. Hence, it is also known as “vertical foreclosure”. It may create a sort of bottleneck problem.
Mergers and Acquisitions in Telecom Sector – Telecommunications Industry mergers and acquisitions
The number of mergers and acquisitions in Telecom Sector has been increasing significantly. Telecommunications industry is one of the most profitable and rapidly developing industries in the world and it is regarded as an indispensable component of the worldwide utility and services sector. Telecommunication industry deals with various forms of communication mediums, for example mobile phones, fixed line phones, as well as Internet and broadband services.
International Mergers and Acquisitions
About International Mergers and Acquisitions
International mergers and acquisitions are growing day by day. These mergers and acquisitions refer to those mergers and acquisitions that are taking place beyond the boundaries of a particular country. International mergers and acquisitions are also termed as global mergers and acquisitions or cross-border mergers and acquisitions.
