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Evaluate the advantages and disadvantages of horizontal, vertical and conglomerate mergers.

Sagot :

Some of the advantages are related to increased market share and product diversification, while the disadvantages are less flexibility and culture shock.

What is an organizational merger?

Occurs in the legal merger of two or more companies with the aim of forming a new organization.

The horizontal merger occurs between two competitors, the vertical between a buyer and a seller, and the merger of conglomerates occurs in companies from different areas of activity.

Therefore, despite the advantages of increasing market value and positioning, the merger between companies can be a risky strategy if it is not established in a planned way.

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