Businesses may come together in a merger for many reasons, but a main goal of a company merger is to increase profits and efficiency. As businesses contemplate a possible merger in the future, they may want to keep in mind that many different types of mergers exist, and it is important to find the right one to fit their needs.
A conglomerate merger occurs between two unrelated business activities. These mergers can occur between two companies that have nothing in common or between two businesses that are looking to extend their area of business. Horizontal mergers, on the other hand, occur between two businesses operating in the same industry and are looking at extending their market share. Vertical mergers are between two companies that exist together in supplying products to a certain supplier.