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.

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References in periodicals archive ?

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.

A study on strategic initiatives and actions taken during a banking merger

The long-term performance of horizontal acquisitions, Strategic Management Journal, 20(11), 987-1018.

Impacts of IT resources on business performance within the context of mergers and acquisitions

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.

Interorganizational imitation: the impact of interlocks on corporate acquisition activity