So, let’s say a consumer goods company purchases a medical device distributer. That is obviously conglomerate. But what if the same parent company later buys a medical device manufacturer, is that still conglomerate since the parent–not the portfolio company–made the acquisition or is it vertical?
It is still a conglomerate, isn’t it? One part is a consumer goods and the other is a medical company. The medical company has a vertical advantage now since it manufacturates an important part of its own products. Something that deserves a better disclosure by the way.