The four types of mergers are the (1) horizontal merger, (2) vertical merger, (3) congeneric
merger, and (4) conglomerate merger
1. Horizontal merger: A horizontal merger occurs when two companies that produce similar products or services and operate in the same industry or market segment merge together. The goal of a horizontal merger is often to increase market share, reduce competition, and achieve economies of scale.
2. Vertical merger: A vertical merger involves two companies in the same industry but at different stages of the supply chain. For example, a manufacturer merging with a distributor or a retailer. The main goal of a vertical merger is to streamline operations, increase efficiency, and control costs.
3. Congeneric merger: A congeneric merger involves two companies that are in related but different industries. These companies may have complementary products or services that can be bundled together to offer a more comprehensive solution to customers. The goal of a congeneric merger is often to expand the product offerings and diversify the customer base.
4. Conglomerate merger: A conglomerate merger occurs when two companies in completely unrelated industries merge together. The main goal of a conglomerate merger is often to diversify risk, expand into new markets, and take advantage of new opportunities for growth.