MERGER ACQUISITION AND RESTRUCTURING

In a merger, two firms combine to form a new entity, while in an acquisition one firm purchases another and the acquired firm may cease to exist as a separate legal entity.

Merger where one company is absorbed and ceases to exist legally.

A horizontal merger occurs between two companies operating in the same industry and at the same stage of production, primarily aimed at gaining market share and achieving economies of scale.

Two or more companies combine to form an entirely new entity.

A vertical merger combines firms at different stages of the production or distribution chain, either forward (towards customers) or backward (towards suppliers), to secure supply chains or distribution channels.

Merger between companies in the same industry but different product lines.

A conglomerate merger involves firms operating in entirely unrelated businesses, undertaken primarily for diversification of risk and to deploy surplus cash into new growth areas.

Acquiring a company closer to the end consumer in the supply chain.