Vertical acquisition

Similar financial terms

Vertical merger
Occur between firms in different stages of production operation for many reasons: (a) avoidance of fixed costs such as heating, storage, transportation, (b) eliminate cost of searching for prices, contracting, payment collection, communication, advertising and coordination and (c) more efficient information flow and better planning for inventory. Uncertainty over input supply is avoided by backward integration which reduces to the fact that long-term contracts are difficult to write, execute, an ...

Vertical spread
Simultaneous purchase and sale of two options that differ only in their exercise price.

Vertical analysis
The process of dividing each expense item in the income statement of a given year by net sales to identify expense items that rise faster or slower than a change in sales.

Vertical Integration
The acquisition by a company operating in one market, of another company that is complementary to its existing business, perhaps as a supplier or user of product, for example a newspaper publishing company acquiring a paper manufacturer. See Vertical merger.

Acquisition
The purchase of a controlling interest in a firm, generally via a tender offer for the target shares.

Acquisition of assets
A merger or consolidation in which an acquirer purchases the selling firm's assets.

Acquisition of stock
:A merger or consolidation in which an acquirer purchases the acquiree's stock.

Taxable acquisition
A merger or consolidation that is not a tax-fee acquisition. The selling shareholders are treated as having sold their shares.

Tax free acquisition
A merger or consolidation in which (a) the acquirer's tax basis in each asset whose ownership is transferred in the transaction is generally the same as the acquiree's, and (b) each seller who receives only stock does not have to pay any tax on the gain he realizes until the shares are sold.

Corporate acquisition
The acquisition of one firm by anther firm.