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What is a vertical merger?

Updated: 10/25/2022
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11y ago

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A Vertical Merger is a company merger that involves the union of a customer with a vendor. The two companies involved in the merger produce different but complimentary products. The vertical merger can also take place as a means of combining assets to capture a sector of the market that either company could manage on their own.

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Q: What is a vertical merger?
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Related questions

What are the disadvantages of vertical merger?

Firstly, there are no disadvantages of vertical merger because I don't know what is that because there's no such thing! TROLL!


What are disadvantages of vertical merger?

Firstly, there are no disadvantages of vertical merger because I don't know what is that because there's no such thing! TROLL!


What are the three types of business mergers?

Three types of mergers are: * Horizontal Merger * Vertical Merger * Conglormarate Merger


What is the definition of vertical merger?

Vertical merger is between two companies that is producing different goods. This happens when two different firms are on different levels.


A merger of corporations involved in different steps of manufacturing or marketing is known as a?

Vertical Merger


What is a merger?

A Vertical Merger is a company merger that involves the union of a customer with a vendor. The two companies involved in the merger produce different but complimentary products. The vertical merger can also take place as a means of combining assets to capture a sector of the market that either company could manage on their own.


How do conglomerates and vertical mergers differ frim horizontal mergers?

Conglomerate is a merger between firms that are involved in totally unrelated business activities. A vertical merger is a merger between firms that exist in the same supply chain, while a horizontal merger is a merger between firms in the same industry.


Is Apple and Ipad an example of vertical merger?

Yes.. Because they both are in the same field. As per the defenitions the copanies in the same field join together is called vertical merger.


Was the merger between Kmart and Sears vertical or horizontal?

Horizontal.


What terms is best described as a merger of corporations that are involved in different steps of manufacturing of the same type of product?

vertical merger


What were some vertical merger companies?

General Motors & BenQ- SIEMENS


What is the difference between horizontal merger and a vertical merger?

Horizontal Merger A horizontal merger is a merger between two competitors. Suppose, for example, that tomorrow Nokia were to buy Sony ericsson. This would be a horizontal merger. Vertical Merger A vertical merger occurs when a supplier buys a reseller, or vice versa. The key point is that the two companies have a buyer-seller relationship. Suppose that a food retailer purchased a company that manufactures food. This would be a vertical merger. Or, suppose that a pharmaceutical company acquired a drugstore chain. Vertical mergers are more likely to be approved by regulatory authorities. Consumers can benefit from the increased efficiencies that result from supply chain integration--- often in the form of lower prices and/or better service. Conglomerate Merger A conglomerate merger is a union of two companies that a.) are not competitors, and b.) not part of the same supply chain. If Oracle were to purchase a fast food chain, this would be a conglomerate merger. Software has no relationship to fast food; fast food has no connection to software (other than providing sustenance for programmers who work long hours.)