Vertical merger

A vertical merger occurs when a buyer and a seller merge to achieve the synergies of controlling all factors affecting a company’s success, from the production of raw goods to manufacturing to distribution and retail sales. A real estate agency might merge with a real estate developer, for example.

Vertical merger is the merger that combines firms operating at different levels in the production and marketing process.

Vertical Merger is a combination of firms, which operate at different levels or stages of the same industry manufacturer mergers with a type company (backward integration).

Vertical merger occurs when one firm unites with others that contribute to its product’s manufacture or distribution. It usually is intended to guarantee sources of parts or sales outlates, so it can be used as an alternative to aquisition in attaining these goals.

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