Horizontal M&A refers to the M&A behavior between the production and marketing departments of similar products in order to improve scale efficiency and market share.
Vertical M&A refers to the M&A behavior between companies that are interrelated and closely related in production or operation for the purpose of expanding business forward or backward.
Mixed M&A refers to the horizontal and vertical M&A behaviors of diversification and market share.
2. According to M&A's motivation, M&A can be divided into:
1. Large-scale mergers and acquisitions reduce production costs and sales expenses by expanding the scale.
2. Functional mergers and acquisitions, increasing market share and expanding market share through mergers and acquisitions.
3. Combined M&A, through which diversified operations can be realized and risks can be reduced.
4. Industrial mergers and acquisitions, through mergers and acquisitions to achieve the integration of production and operation, and expand the overall profit.
5. Achievement-oriented M&A, through which entrepreneurs' desire for achievement can be realized.
Extended data
Basic principles of enterprise merger and acquisition:
When an enterprise merges, it shall make a decision on the basis of benefit analysis. Its basic principle is that M&A's net income should generally be greater than zero, so that M&A can make a profit and realize the goal of maximizing shareholders' wealth. The calculation of M&A net income can usually be done as follows: First, the calculation of M&A income should be the balance of the overall value of the new company after the merger minus the overall value of the acquirer and the target company before the merger.
References:
Baidu encyclopedia-enterprise M&A