Skip to main content

Types of Merger

The companies in the world sometimes merge with the other to stay or to expand their bussines. There are some types of merger as listed below :

Synergy 

It is the benefit. it is the additional benefit derived by merging two or more firms. in other words, the value of a merged firm will be greater than the total value individuals firms separately before merger is known as synergy.

Merger 

It is any combination that forms one economical unit from two or more previous one. it means that two or more firms combine together to form a one single unit is knows as merger.

Horizontal merger 

It is a type of merger which occurs when one firm combines with another firm, which is in the same line of business.

Vertical merger 

It is a type of merger which occurs when one firm combines with another firm,  whice are in the different levels or bussiness. in other words, if a merger takes places between the proucer of a product and the supplier of the product. it is a vertical merger. this can be downsideintergation or upward integration.

Con - generic merger

Con- generic means " allied in nature or action" . it is a type of merger which occurs when one firm combines with another firm which are related enterprises but not the producers of the same product.

Conglomerate merger 

It is a type of merger which occurs when one firm combines with another firm which are unrelated enterprises that is different business line.

So, that all the type of merger to know, if you have any question, just ask in comment form. Thanks you for visiting.
Comment Policy: Silahkan tuliskan komentar Anda yang sesuai dengan topik postingan halaman ini. Komentar yang berisi tautan tidak akan ditampilkan sebelum disetujui.
Buka Komentar