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What Are Some of the Key Issues to Take into Account

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What are some of the key issues to take into account when considering whether or not to vertically integrate?


Definitions:

Cash Flow From Assets

The total amount of money being transferred in and out of a company's operations, investments, and financing, specifically relating to its assets.

Cash Flow To Creditors

The amount of cash companies pay to their creditors and lenders, including payments for interest and principal on debt.

Cash Flow To Shareholders

Dividends paid out by a firm less net new equity raised.

Capital Gains

The profit that results from a sale of a capital asset, such as stock, bond, or real estate, where the sale price exceeds the purchase price.

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