Horizontal Merger
What is a Horizontal Merger? A horizontal merger occurs when companies operating in the same or similar industry combine together. The purpose of a horizontal merger is to more efficiently utilize economies of scale, increase market power, and exploit cost-based and revenue-based synergies. Reasons for a Horizontal Merger When companies undergo a horizontal merger, the...
Vertical Merger
What is a Vertical Merger? A vertical merger is a union between two companies in the same industry but at different stages of the production process. In other words, a vertical merger is the combination and integration of two or more companies that are involved in different stages of the supply chain in the production...
Horizontal Acquisition
What is a Horizontal Acquisition? A horizontal acquisition, also known as a horizontal merger or horizontal integration, is a strategy that involves one or more organizations taking over or merging with another that operates in the same industry and is in the same stage of production. When the integration occurs, it’s generally to enable formerly...
Main Street vs. Wall Street
What is Main Street vs Wall Street? “Main Street vs Wall Street” is used to describe the contrast of general consumers, investors, or small local businesses with large investment corporations. Main Street represents the small and local ones, including small businesses, general individual investors, and small independent investment firms. Wall Street, as a symbol of...
Shark Repellent
What is a Shark Repellent? Shark repellent refers to measures employed by a company to lock out hostile takeover attempts. The measures may be periodic or continuous efforts exerted by management to make special amendments to its bylaws. The bylaws become active when a takeover attempt is made public to the company’s management and shareholders....
