What are 3 main types of tech mergers? [Video]
Mergers allow companies to gain new skills or industry knowledge, diversify their products or services, and broaden their market reach. For those interested in learning more about what this would mean for their company, here are three main types of mergers:
The first is a horizontal merger, which is typically where two companies are competitors in the same industry. This is an effective way to decrease competition and provide consumers with less expensive or more effective products or services.
{merger} A vertical merger is where the two companies in question are in the same business sector, yet approach the market differently. This type helps companies interact better with their consumers or meet needs in a whole new way.
{merger} Finally, a conglomerate merger is where two companies are in vastly different industries, yet the merger is made to expand a company’s processes and profits.
If your company is looking to pursue a merger or acquisition, seek out guidance from an expert M&A advisor. Contact us today to learn more.