Buying and selling goods are the most common phenomenon of business. But many companies are involved in buying and selling of companies. In business terms it is called merger and acquisition. Merger are of three kinds: Horizontal, Vertical and conglomerate.
Horizontal merger means buying the same kind of company or two companies with same kind of business come together under one umbrella. For example Vodafone acquired German telecommunication giant Mannesmann, J P Morgan acquired Chase Manhattan bank.
Another type is vertical acquisition. In this type a company acquires another direction of business. Either it goes to raw material side of goes to forward direction of customer. For example walt Disney acquired ABC television to reach to large size of customer.
Finally, conglomerate merger includes random acquisition of companies. There is no direct link between the parent company and subsidiary or acquired company. For example AT&T acquired NCR .
However most acquisitions are failed like an abnormal marriage . Daimler had to divorce with Chrysler after many years of merger. Other big companies were also in trouble because of unusual merger and acquisition.
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hey suvas, this reminds me of the weiblen course and the presentation on M&A that I had to make in his class..
what are you doing these days? and where are you? long time
Whether you are planning to sell your own business, or buy a company in a planned manner, mergers and acquisitions need to ensure that the end result is an effective and successful deal for everybody involved. Valuation of the company will usually immediately follow any decision to participate in a mergers and acquisitions deal. In the case of vast businesses, there are specific mergers and acquisitions professionals who are responsible for the decision from the beginning to the end, including valuation of the company.
M&A Advisors
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