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From course:

Industrial Organisation 2022

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Question:

What is a vertical M&A?

Author: Hjalmer Pedersen



Answer:

A vertical merger is the merger of two or more companies that provide different supply chain functions (in the same chain) for a common good or service. Most often, the merger is effected to increase synergies, gain more control of the supply chain process, and ramp up business. A vertical merger often results in reduced costs and increased productivity and efficiency.


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