what is Vertical Merger

Posted on 13-05-2016        By ADMIN

what is Vertical Merger ?

Vertical Merger: It is a merger which takes place upon thecombination of two companies which are operating in the same industry but atdifferent stages of production or distribution system. If a company takes overits supplier/producers of raw material, then it may result in backwardintegration of its activities. On the other hand, Forward integration mayresult if a company decides to take over the retailer or Customer Company.Vertical merger provides a way for total integration to those firms which arestriving for owning of all phases of the production schedule together with themarketing network 

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