What are the different types of mergers?
Business Mergers is a term used to describe two companies. Different types of merger include: vertical fusion, horizontal fusion, merger of conglomerate, merger of market extension and merger of product extension. It can be either a complete fusion where all aspects of both companies are combined or a partial fusion where there are now only certain parts or duties.
The vertical fusion is one of the most common types of mergers. When the company connects to the supplier or customer to create an extension of the supplier chain, it is known as vertical merger or integration. An example of a vertical merger is the merger of a steel plant with a car manufacturer. The steel company was formerly a supplier of car manufacturer, but after merging it would be part of the same company.
horizontal fusion are types of mergers that involve companies in direct competition with each other. Often horizontal fusion is considered hostile that the meaning of a larger society "takes over" smaller in more acquisition than Fuze. An example of horizontal merger in the traditional sense is the combination of automotive companies Chrysler and Daimler Benz. Both companies wanted fusion and once combined, they were called Daimler Chrysler. In the case of Daimler Chrysler, there was a market share synergy, financial obligations and operating costs that make the resulting company better than both companies separately.
The merger of conglomerates are types of mergers that are in various market companies. There is no relationship between the type of business in which there is society and the type in which it is second. The merger is usually part of a desire by one company to increase its financial wealth. By merging with a completely unrelated but often equally profitable company, the resulting conglomerate obtains a flow of income in many types industries.
market extension is similar to horizontal mergers in that merger companies produce the same types of products. However, the difference is that societies do not care in direct competition. Instead, they compete in various markets, such as one company based in North America and only sells in the US and the other of Asia and is sold only in China. The new company will have more access to selling as a whole and will also be able to obtain synergies through combined production or research and development.
The fusion of product extension is the types of mergers that combine companies that sell related products on the same market. An example would be a manufacturer of ski skiers connected with ski clothing. Both companies are sold on the Snow Skier market, but the combination of their product is expanded.