why do companies engage in vertical and horizontal mergers at this stage of the industry life cycle?
Only opportunities for growth is through aquisitions.
ok why not conglomerate as well then?
Not sure what you are asking here…
Do you have the secret sauce? page 93 for the mature stage - horizontal and vertical and for stabilization -horizontal? Why there is this distinction? i cannot remember the reason…
Mature growth phase new comp has reduced industry profits. So merger motivations are based upon operational efficiencies. Hence the horzontal/veritical P. 141 book 3 schweser Rapid growth companies manily need capital so congomerates buy them up.
My logic is while there’s still some growth to be had, they need to also cut costs to generate returns that are acceptable. So vert/horiz mergers because of that word which should be banned, synergies.
Thanks for the moment i could not rememeber the underlying reasons…