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Horizontal merger

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Definition of Horizontal merger

Horizontal Merger Image 1

Horizontal merger

A merger involving two or more firms in the same industry that are both at the same
stage in the production cycle; that is two or more competitors.



Related Terms:

Conglomerate merger

A merger involving two or more firms that are in unrelated businesses.


Horizontal acquisition

merger between two companies producing similar goods or services.


Horizontal analysis

The process of dividing each expense item of a given year by the same expense item in
the base year. This allows for the exploration of changes in the relative importance of expense items over time
and the behavior of expense items as sales change.


Horizontal spread

The simultaneous purchase and sale of two options that differ only in their exercise date.


Limitation on merger, consolidation, or sale

A bond covenant that restricts in some way a firm's ability to
merge or consolidate with another firm.



Merger

1) Acquisition in which all assets and liabilities are absorbed by the buyer.
2) More generally, any combination of two companies.


Merger

The combination of two or more entities into a single entity, usually with one
of the original entities retaining control.


Horizontal Merger Image 2

merger

Combination of two firms into one, with the acquirer assuming assets and liabilities of the target firm.


Vertical merger

A merger in which one firm acquires another firm that is in the same industry but at another
stage in the production cycle. For example, the firm being acquired serves as a supplier to the firm doing the acquiring.



 

 

 

 

 

 

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