Horizontal Mergers and Such!

June 7th, 2022

So now what do you do? You have been acquired or acquired a similar business.

 

Today’s post is by Ronald D. Southard, CEO at SafeSourcing Inc.

So now what do you do? You have been acquired or acquired a similar business.

A horizontal merger is a business consolidation that occurs between firms who operate in the same space, often as competitors offering the same good or service. Horizontal mergers are common in industries with fewer firms as competition tends to be higher and the synergies and potential gains in market share are much greater for merging firms in such an industry.

This type of merger occurs frequently because of larger companies attempting to create more efficient economies of scale. The amalgamation of Daimler-Benz and Chrysler is a popular example of a horizontal merger.

Conversely, a vertical merger takes place when firms from different parts of the supply chain consolidate in order to make the production process more efficient or cost effective.

SafeSourcing is an eprocurement company that operates across multiple industries. As such we have specific experience in collaborative sourcing which is often needed during these times. Through the use of our SafeSourceIt™ Template library, SafeSourceIt™ Supplier Database and our SafeSourceIt™  eprocurement platform we can often aid in consolidation that ensures the lowest price available in the market today,

If you are involved in any type of merger, and would like assistance in consolidating your spends, please contact a SafeSourcing customer services associate.

 

 

 

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