Type Main Features Benefits
Horizontal M & AMerge a competitor
a) Achieve economies of scale
b) Increase market share
c) Enhance industry concentration
Vertical M & AMerge a supplier or customer in the supply chain
a) Extend the scope and depth of the business
b) Save the transaction cost
c) Improve coordination and specialization
Mixed M & AMerge across industry
a) Diversify the business and hence reduce the risk
b) Fully utilize resources to achieve synergy
c) Reduce the cost of entering a new industry
