How Vertical Integration Works: With Types and Examples.

What is Vertical Integration? Vertical integration is a business strategy that involves a company owning or controlling its suppliers or distributors. This can give the company more control over its product or service, as well as greater efficiencies and economies of scale. There are different types of vertical integration, and each has its own advantages … Read more

Shark Repellent.

A “shark repellent” is a defensive measure used by a company to make it less attractive to potential acquirers. Shark repellents can take many different forms, but they all share the common goal of making a takeover more difficult, costly, or risky for the would-be acquirer. There are many different types of shark repellents, but … Read more

What Is a Counteroffer?

A counteroffer is a new offer made by one party in response to an offer made by another party. A counteroffer effectively rejects the initial offer and puts forward a new set of terms for consideration. Counteroffers are common in negotiation situations, especially in business deals and real estate transactions. Should I accept counter offer? … Read more

Management Buyout (MBO).

A management buyout (MBO) is a type of acquisition where a company’s management team purchases the company from its current owners. The management team will typically use a combination of their own personal finances, bank loans, and private equity to finance the buyout. Once the company is acquired, the management team will have full control … Read more

All-Cash Deal.

An all-cash deal is a transaction in which the buyer pays the seller the full purchase price of the asset in cash, without financing or taking on debt. All-cash deals are often used in mergers and acquisitions (M&A) when the buyer wants to avoid the complications and risks associated with financing the purchase. In an … Read more

Vertical Merger Definition.

A vertical merger is defined as a merger between companies that operate at different stages of the same production process. For example, a company that manufactures car parts may merge with a company that assembles cars. Vertical mergers can also occur between companies that provide complementary goods or services. For example, a company that provides … Read more

Backward Integration.

Backward integration is a type of business growth strategy in which a company expands its operations to include control of its suppliers. In a backward integration strategy, a company seeks to control its suppliers in order to secure a reliable and uninterrupted supply of raw materials or other inputs for its production processes. Backward integration … Read more

Forward Triangular Merger.

A forward triangular merger is a type of merger in which a target company is bought by a purchasing company, and the target company’s shareholders receive shares in the purchasing company. The shareholders of the target company end up owning a stake in the purchasing company, but the purchasing company does not end up owning … Read more

What Is a De-Merger.

A de-merger is the process of separating a company into two or more independent companies. This can be done through a variety of methods, such as spinning off a subsidiary, carving out a business unit, or selling off assets. De-mergers can be motivated by a variety of reasons, such as increasing shareholder value, unlocking value … Read more