Google+  

Types Of Mergers And Acquisitions

Mergers and acquisitions in Long Island are agreements between two different companies, which allow two or more companies to combine together into one company. There are several reasons why companies would decide on a merger including gaining some sort of competitive edge through their industry. A merger also allows for shared resources between the two companies when they merge into one company, and expands the market of the product that is being sold. Some examples of mergers include horizontal mergers, conglomeration mergers, product-extension mergers, and market-extension mergers. Each can provide certain benefits to the companies involved.

Horizontal Merger

The first type of mergers and acquisitions in Long Island is a horizontal merger. Horizontal mergers proceed between two companies that are considered direct competition with each other. Both companies work in similar markets, or even in the same market, and provide the same services and products within their respective market. Effectively, the merger will result in one company selling the services and products instead of two competing companies. This merger may result from an agreement between the two companies which allows both companies to still own shares in the new company, or one of the companies can buy out the other and own all rights and profits of the new company.

Conglomeration Merger

The second type of mergers and acquisitions in Long Island is known as conglomeration mergers. Conglomeration mergers are similar to horizontal mergers in that two companies agree to merge their companies into one, big company. The main difference between these two types of mergers is that in a conglomeration merger, the two companies do not work in the same market and they sell different services and products.

Product-Extension

Mergers and acquisitions in Long Island may also include a merger type known as product-extension merger. This merger allows for two companies to join together, neither of which sells the same product. However, the products each company sells both fall into related categories. Both companies are also allowed to serve in the same, or a common, market. An example of this would include a company that sells boats and another who sells fishing supplies. Combining the resources of both companies allows shared resources and decreased prices for the consumer.

Market-Extension

The final type of mergers and acquisitions in Long Island, market-extension merger, is similar to the horizontal merger in that both companies involved sell the same product. The difference between these two merger types is that in market-extension mergers, the companies sell their products in separate markets. The result of this type of merger means that the market for this product is expanded, and the one company is allowed access to the resources from the previous two separate companies.

If you want to find out more about mergers and acquisitions Long Island, contact Jaspan Schlesinger Attorneys at Law at 516-746-8000. They can help you determine eminent domain in your situation.

Be the first to like.

Shares
Share This