Vertical Acquisition

Definition

A Vertical Acquisition is when a company acquires another company in the same industry but at a different point in the supply chain.

Usage and Context

A vertical acquisition is when a company buys another at a different stage of the same supply chain.

Frequently Asked Questions

What is a vertical acquisition?
A vertical acquisition is when a company acquires another in the same industry but at a different production stage.

What is vertical acquisition vs horizontal?
Vertical acquisition involves acquiring a company at a different stage of the same supply chain, while horizontal acquisition involves acquiring a competitor in the same industry.

What is a vertical supply chain?
A vertical supply chain is when a company controls multiple stages of production or distribution, from raw materials to the final product.

Benefits

A vertical acquisition means buying a company at a different stage of the supply chain.

Conclusion

A vertical acquisition involves purchasing a company at a different stage of the supply chain.