Ottegal, a women's clothing line, decides to acquire a company that owns several retail outlets that sell its clothing. This is an example of a ________.

Question

Quizplus · Accepted Answer

A forward vertical merger is when a company acquires a supplier or distributor. In this scenario, Ottegal is acquiring a company that owns retail outlets that sell its clothing, which would be a distributor. Therefore, it is a forward vertical merger.

Ottegal, a Women's Clothing Line, Decides to Acquire a Company