The acquisition of a ﬁrm in the same industry as the bidder is called a _____ acquisition.

Question

Quizplus · Accepted Answer

A horizontal acquisition is when a company acquires or merges with another company in the same industry or market, while a conglomerate acquisition involves the acquisition of a company in a different industry. Forward and backward acquisitions refer to acquiring companies in the supply chain (i.e. forward towards the end-user or backward towards the raw materials), while a vertical acquisition refers to acquiring a company in a different stage of the supply chain (i.e. upstream or downstream). Therefore, the best choice is D) horizontal acquisition.

The Acquisition of a ﬁRm in the Same Industry as the Bidder