Rosapeak Advisors

Types of mergers

Here are some types of mergers:
Horizontal merger: 

This involves the merging of two entities in the same industry. Horizontal mergers often involve competitors who want to capture a larger market share, enjoy merger synergies and achieve economies of scale.

Vertical merger:

This is a merger between two businesses that sell different products but share common supply chains. This transaction aims to improve operational efficiency.

Market extension merger: 

This is the merging of two companies in the same industry to gain a larger number of customers. The companies usually sell the same products or services, so the merger strives to gain a larger client base.

Conglomerate merger:

A conglomerate process occurs when two companies that share no similarities become one to reduce risk, share assets and benefit from scale. In a pure conglomerate merger, the merging entities are unrelated and serve different markets, while mixed  onglomerate mergers help companies access new markets or expand product lines.

Product extension merger:

This merger involves two entities selling related products in the same industry. Both entities often
share similar production processes, supply chains and distribution channels. The merger aims to allow the two companies to group their products together to increase market access and profits.