| Book Edition | 15th Edition |
| Author(s) | Brigham |
| ISBN | 9781337395250 |
| Publisher | Cengage Learning |
| Subject | Finance |
The merger of two banks offering similar products and services is an example of a horizontal merger.
The merger of a producer with its supplier or distributor is an example of a vertical merger.
The merger of a bank and an insurance company is an example of a congeneric merger.
The merger of a technology company and a mining company is an example of a conglomerate merger.
Horizontal merger happens when two firms that operate in the same industry and provide similar services decide to merge.
Vertical merger happens when a firm decides to merge with another firm that operates in the same industry but is a part of the acquiring company's supply or distribution chain.
Congeneric merger happens when two firms that operate in the same industry but provide different products or services and do not have a producer-supplier relationship decide to merge.
Conglomerate merger happens when two companies in totally different industries decide to merge.
