What is a backward vertical merger?
A) a vertical merger between two or more companies that compete in the same business and geographical market
B) a vertical merger between two companies in similar fields whose sales do not overlap
C) a vertical merger in which a supplier acquires a customer
D) a vertical merger in which a customer acquires a supplier

Question

Quizplus · Accepted Answer

A backward vertical merger is when a customer acquires a supplier. It is said to be "backward" because it involves acquiring a company that supports the acquirer's own operations further back in the supply chain. This type of merger can help the acquiring company gain more control over its supply chain and potentially reduce costs.

What Is a Backward Vertical Merger