What you’ll learn to do: describe the two types of mergers and acquisitions

One of the quickest ways for a business to expand into other markets or products lines is either to merge or acquire/purchase another company. Although this is common in today’s business environment, there are still many complex factors to consider before deciding whether a merger or acquisition is the optimal solution.

The specific things you’ll learn in this section include:

• Define merger as a business strategy
• Define acquisition as a business strategy
• Explain why companies undertake horizontal mergers and acquisitions
• Explain why companies undertake vertical mergers and acquisitions