Capron, Laurence, "The Long-Term Performance of Horizontal Acquisitions," Strategic Management Journal, 1999; 20 (11), 987-1018.
Capron, Laurence, Pierre Dussauge, and Will Mitchell, "Resource Redeployment Following Horizontal Acquisitions in Europe and North America, 1988-1992," Strategic Management Journal, 1998; 19 (7), 631-61.
While research on horizontal acquisitions tend to pay more attention on cost-based synergies and argue for the better benefits of related mergers compared to unrelated mergers, unrelated merger integration also has potential to bring about synergies and long-term benefits for the acquiring firms.
The long-term performance of horizontal acquisitions, Strategic Management Journal, 20(11), 987-1018.
We're more into making horizontal acquisitions
that support broader initiatives.
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.
Whereas market dominance at the century's start - in oil and tobacco, for example - was sustained by scale economies (prompted by add-on or horizontal acquisitions
that consolidated an industry platform), dominance at the century's end relies heavily on the perceived differentiation of brand names like AT&T, IBM, and Microsoft (or Intel inside).
Horizontal acquisitions occur when firms acquire their competitors, vertical acquisitions occur when firms acquire their suppliers or distributors, and conglomerate acquisitions occur when firms acquire unrelated firms.
Accordingly, we should see a relationship between the type of acquisition (horizontal, vertical, or conglomerate) completed by the tied-to and focal firms: Hypothesis 3a (H3a): The number of prior horizontal acquisitions by tied-to firms is positively associated with the number of current horizontal acquisitions by the focal firm.