Types of Business Acquisitions

31 Aug 2010 Leave a Comment

by Asif J. Mir in Types of Business Acquisitions Tags: acquisition, activity, business, buy, classify, combination, company, congeneric, conglomerate, different, Distribution, follow, form, function, horizontal, industry, perform, production, relate, type, unrelated, vertical

An acquisition can be classified as one of the four types, as follows:

1. Horizontal Acquisition is a form of business combination in which one company buys another that is in the same industry and performs the same function.
2. Vertical Acquisition is a business combination in which one company buys another that is in the same industry but performs a different production or distribution activity.
3. Congeneric Acquisition is a business combination in which one company buys another that is in a different industry but performs a related activity.
4. Conglomerate Acquisition is the type of business combination in which one company buys another that is in a different industry and performs an unrelated activity.

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