Merger

A merger is the combination of two companies into a single entity, typically to create synergies, reduce costs, or expand market share. Mergers can be either horizontal (between competitors) or vertical (within the supply chain). They are a common growth strategy in sectors where consolidations lead to operational efficiencies and improved competitive positioning. Mergers are significant in private equity as exit strategies or portfolio company scaling tools.

• Combination of two companies into one entity.
• Designed to create synergies and expand market share.
• Can be horizontal or vertical mergers.
• Common in growth strategies and PE exit plans.