Horizontal acquisition


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Related to Horizontal acquisition: Vertical Merger

Horizontal acquisition

Merger between two companies producing similar goods or services.

Horizontal Acquisition

The acquisition of one company by another in the same or a similar industry. This is often a part of the market consolidation process, when too many companies exist for the market to support. They then acquire each other in order to create fewer companies that are more competitive. In venture capital, horizontal acquisitions and horizontal mergers may be part of a roll up process.
References in periodicals archive ?
The long-term performance of horizontal acquisitions, Strategic Management Journal, 20(11), 987-1018.
In other words, they should evaluate all strategic merger and acquisition options available, conduct a thorough analysis of every company within the industry and beyond, looking at vertical and horizontal acquisitions, evaluating those options, reviewing potential consequences, preparing the company to initiate merger discussions with target companies, or responding to the overtures of potential acquirers.
Horizontal acquisitions, where similar companies serving the same market merge, are more likely to raise competition concerns.
Management expects that future horizontal acquisitions should increase its average gross revenue per installation from the current average of $30,000 to over $100,000.