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.
, 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.
These acquisitions reflect the strategy outlined when we formed the company to grow our business annually by 20% through vertical and horizontal acquisitions
as well as through internal growth and we continue to be on target to do so.
ARC also seeks out vertical and horizontal acquisitions
in order to bolster its market position.
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.