Question

Chapter 4:  Types of Mergers                             

We Need to Merge!

Step 1: Examine the list of five possible mergers below. Indicate whether each is horizontal, vertical, or conglomerate. Defend your choice.  10 points

 

Step 2:  Develop your own example for each type of merger using any companies you are familiar with, particularly local companies.  10 points

 

Example:  Hancock/Whitney Bank and Mid-South Bank

Type:  Horizontal

Why:  Both do the same service banking.

 

1. Nike Corporation and Reebok:

Type_________________

Why___________________________________________________

 

2. CVS  and Aetna 

Type_________________

Why___________________________________________________

 

3. Sealy Mattress Company and Viking Furniture Manufacturing:

Type_________________

Why___________________________________________________

 

 

4. State Farm and Geico: 

Type_________________

Why___________________________________________________

 

 

5. Apple Buys Shazam: (a company that lets users identify songs, movies, TV shows, and commercials from short audio clips) 

Type_________________

Why___________________________________________________

 

Step 2:  You have freedom here to make up any acquisition you want that would qualify for each type:

Conglomerate

 

Horizontal

 

Vertical