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Merger 
Sayed Eqbal 120633
* 
The combining and joining of two 
or more companies together.
* 
1. Conglomerate 
2. Horizontal Merger 
3. Market Extension Mergers 
4. Product Extension Mergers 
5. Vertical Merger
* 
Does not require cash. 
Accomplished tax-free for both parties. 
The company can run out of one headquarters instead of two separate 
executive offices. 
This can save time and money for the new company. 
The competition of the companies may face with others throughout the 
world. 
Two companies that merge from the same country can do better at facing 
international competition than two small companies. 
The company may also choose to reduce the amount of staff after the 
merger.
* 
Synergy 
Growth 
Increase Supply-Chain Pricing Power 
Eliminate Competition 
Improve Competitive Position 
Acquire Resources and Skills
Financial Management

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Financial Management

  • 2. * The combining and joining of two or more companies together.
  • 3. * 1. Conglomerate 2. Horizontal Merger 3. Market Extension Mergers 4. Product Extension Mergers 5. Vertical Merger
  • 4. * Does not require cash. Accomplished tax-free for both parties. The company can run out of one headquarters instead of two separate executive offices. This can save time and money for the new company. The competition of the companies may face with others throughout the world. Two companies that merge from the same country can do better at facing international competition than two small companies. The company may also choose to reduce the amount of staff after the merger.
  • 5. * Synergy Growth Increase Supply-Chain Pricing Power Eliminate Competition Improve Competitive Position Acquire Resources and Skills