What is a diagonal business combination?
A diagonal business combination is when two companies that provide support services combine to make them one company. The main objective in a diagonal business combination is to make the support service larger and self sufficient.
For example, if one company is a manufacture and one provides repair services, then they would merge so that both companies would be self sufficient on a combined basis.
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What is a vertical business combination?
A vertical business combination occurs when a company acquires another company that is in the same vertical or industry, however, the company operates in a different stage of the supply chain. If a company acquired a company in the same vertical and same stage of the supply chain, then that would be a horizontal business […]
What is the difference between a horizontal and vertical business combination?
The key difference is that each company operates in a different phase or stage of the supply chain. A horizontal business combination occurs when a company acquires another company in the same industry or vertical, and that company is in the same phase of the supply chain (both companies manufacture cars). A vertical business combination […]
What is a business combination?
A business combination is a type of event or transaction and occurs when one company gains control (acquirer) over another company (acquiree). The main reason a company would consider a business combination is because the combined business would be stronger than the individual business operating separately. The acquirer would acquire the other company to obtain […]