The acquisition of a ﬁrm in the same industry as the bidder is called a:
A) Conglomerate acquisition.
B) Forward acquisition.
C) Backward acquisition.
D) Horizontal acquisition.
E) Vertical acquisition.

Question

Quizplus · Accepted Answer

A horizontal acquisition is when a firm acquires another firm in the same industry. Therefore, it is the best choice for this question. The other options are not relevant to this scenario - a conglomerate acquisition is when a firm acquires a company in a completely unrelated industry, a forward acquisition is when a company acquires its supplier(s), a backward acquisition is when a company acquires its customer(s), and a vertical acquisition is when a company acquires a company that is either upstream or downstream in the supply chain.

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