What Is the Basic Difference Between Mergers and Acquisitions

question 186

Short Answer

What is the basic difference between mergers and acquisitions?

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Definitions:

Conglomerate Merger

A type of corporate action where firms in unrelated business activities or industries merge or acquire each other.

Horizontal Merger

A business consolidation that occurs between firms which operate in the same industry, often aimed at reducing competition or achieving economies of scale.

Interlocking Directorate

A situation where one or more members of the board of directors of a corporation are also on the board of directors of a competing corporation; illegal under the Clayton Act.

Tying Contract

An agreement requiring a customer to buy additional products or services along with a primary product or service.