Merges And Aquasitions Flashcards
1
Q
What are merges?
A
When two firms of the same size work together and save costs
2
Q
What is an acquisition?
A
When one firm buys another, owning 51% of the shares
3
Q
Name some benefits
A
Growth, cost saving, product diversification, market power
4
Q
What is vertical integration?
A
When a firm buys another who operates in a different production process but within the same industry
5
Q
What is backward vertical integration?
A
When a firm buys a supplier
6
Q
What is forward vertical integration?
A
Firm buys a costumer
7
Q
What is horizontal integration?
A
When one firm buys another in the same industry at the same stage of the supply chain (Adidas buying reebok)
