Question

1. (15 pts) What are the three types of merger? For each type, define such, and give one reason or justification for that type of merger.

Answer 1

The Three types of mergers are

1) Horizontal Merger

2) Vertical Merger

3) Concentric Merger

1) in this regard it can actually be mentioned that horizontal mergers happened between two companies that lead to sell the same or similar product and cater the same target audience this is actually done to Economies of scale increase the market share

2) it can be mentioned that for a a vertical Merger, it happens between the companies which produce the same good but at different stages of production on the whole and this is actually done to reduce the the operation complications and conflicts and make the process more smooth

3) concentric Merger actually happens between two companies that produce different goods and services but cater the same target audience and this is actually done in order to mutually co-operate and promote the product with which cost can be reduced