Monday, January 17, 2011

Acquisition: Form of integration & Type of merger

Acquisition: Form of integration
Form of integration
Subsidiary
  • Maintain the successful target company's brand and operational structure.
  • Most subsidiary mergers occur when the target has a well-known brand that the acquirer wants to maintain.
Statutory
  • The target company would cease to exisit as a separte entity.



Acquisition: Type of merger
Type of merger
Horizontal
  • An acquirer and a target company are in the same industry.
Vertical
  • An acquirer would be moving up or down the supply chain.

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