September 15, 2016

Horizontal vs. vertical mergers: What makes them different? [Video]

Is a horizontal or vertical merger better for your company? At a glance, it might seem like the vertical merger is going to be the better choice, moving your business higher up in status. Look closer, and you’ll find that each of these has its place.

When it comes to mergers, horizontal and vertical refer to what your company gets out of the deal. While a horizontal deal will bring two competing companies together, a vertical one unites businesses that might already be working together. 

Neither one is better than the other, and either could be right for your business. A horizontal move could help your business create a new entity with a partner, while a vertical merger could strengthen what you already have.

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