Vertical or horizontal?

This topic contains 17 replies, has 17 voices, and was last updated by  Thomas Teltscher 7 months, 3 weeks ago.

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    Yoke Chang Tan

    I believe it is always important to question the intent of the integration like most have pointed out. A useful framework is to relook at the business model canvas. The company would need to decide where to play and how to play. Would the integration enhance the where/how to play? If yes, then it would be ideal for the acquisition to take place (regardless vertical or horizontal).



    The company’s strategic goals should come first and then align that with the market cycle, industry potential growth and market size.


    Thomas Teltscher

    It’s an interesting question. I am not sure whether there is a generally valid answer. I would tend to believe that horizontal integrations are easier as the acquirer is already familiar with the industry, whereas vertical M&A requires good knowledge of the relevant market. The lessons that can be learned, however, may be more interesting in vertical acquisitions, as new industry know-how is being acquired.

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