4 Types of Mergers – What Are They?


Corporate mergers are complex transactions, regardless of the size of the businesses that enter the deal. And like any complex transaction, these deals can also be categorized from various aspects. M&A advisors, iKadre – https://ikadre.com/, explain that there are four main types of mergers:

  • A horizontal merger – When two companies, similar in size and product range, merge, it is called a horizontal merger. The goal of these transactions is to expand their range of products without having to engage in developing anything entirely new;
  • A vertical merger occurs when two companies are in the same industry but handle different activities deciding to merge; the transaction is called a vertical merger. A good example is a retail company that merges with a manufacturer that produces the retailer’s main or most popular product;
  • A conglomerate merger – the term is used for deals when two large companies from different industries join forces to increase their market share in both sectors;
  • A concentric merger – in this type of merger, two companies that share customers but provide different products or services join to form a new business entity.

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