Unit 90 Flashcards
Merging with a firm involved with the previous stage of production
Backward vertical integration
The selling off of a profitable sections and the crossing down of loss making sections of a business following an acquisition
Asset striping
Assets that a business requires together to be successful
Complementary assets
The merging of firms involved in completely different business activities
Conglomerate/ Diversifying merger
Where a business splits into to or more separate organizations
Demerger
Merging with a firm involved with the next stage of production
Forward vertical integration
The merging of firms which are in the exactly the same line of business
Horizontal integration
Two firms sharing the costs, responsibility and profits of a business venture
Joint venture
The merging of firms involved in the production of similar goods, but not in competition with each other
Lateral integration
The sale of a business to an outside management team
Management buy-in
The sale of a business to the existing management team
Management buy-out
Where a company takes over a larger company than itself
Reverse takeover
Where two or more activities or businesses, combined, create a greater outcome than the sum of the individual parts
Synergy
The merging of two firms at different stages of production
Vertical integration
