Mergers Of Equals
Organizations involved in mergers are usually of similar status and size and are sometimes referred to as “mergers of equals”. The type of merger that occurs between organizations depends on the relationship between the consolidated companies, the nature of the transaction, and the economic task of the merger.
Here are five categories to help understand the different types of business mergers we can help you negotiate:
- Conglomerate Mergers
- Vertical Mergers
- Horizontal Mergers
- Market Extension Mergers
- Product Extension Mergers
There are actually two different types conglomerate mergers available to you and your potential merging company. Bassett Law firm is uniquely equipped to walk you through both. The first is called a pure conglomerate merger. These conglomerates happen between firms of a different nature. The second is called mixed conglomerate. This would involve companies merging for market or product extensions.
When two or more companies operate under different levels within the production supply chain want to merge – we’ve got ourselves a vertical merger. This type of merger is for organizations that want to merge with the idea that two companies would be more efficient as one.
Horizontal mergers are for two or more firms that operate in the same market as competitors providing similar goods and services. This type of transaction usually occurs when there are few companies in the industry and a consolidation would lead to potential gains in market share.
Market Extension Mergers
When two organizations that provide the same service or product in different markets are interested in the possibility of merging, it’s called a market extension merger. The win for each organization is that it gives the consolidated companies access to larger markets and a greater customer base.
Product Extension Mergers
Product Extension merger involves companies that offer related products in the same market place. This type of consolidation allows organizations to combine their products for access to a greater consumer base and increased profits.
We are here to help
As you can imagine, there are unique challenges for each type of specialized merger. No two mergers are the same even within the same categories. If your organization is weighing its opportunities for a merger, don’t wait to take advantage of the experienced counsel of Bassett Law firm,located in Fayetteville, Arkansas and has experienced attorneys with the knowledge to meet your needs in Oklahoma, Missouri, and Arkansas. Call the Bassett Law Firm LLP at 479.521.9996 or fill out the brief contact form to schedule a free initial consultation.