Vertical Acquisition

You must have invested a lot of money and time and your business have survived the influence business risk factors. The enormous experience acquired is enough to think of growing the business. Which major to use depend on the business type. We can grow a business by using inorganic growth or organic growth.

a) Inorganic growth is a business expansion strategy that uses “merger” or “takeover” principle as a means of increase activities rather than opening new physical location.

i)A merger occurs when two firms agree to put their resources together and focus the best activities of each. The choice of which company to merge with can take the form of a horizontal integration or vertical integration. For example, a horizontal integration is when two industries at the same stage of production decide to merge their drink production plant. Next in vertical integration two industries at different stages of production. For example, the only cotton transformation and exportation …show more content…
A takeover is a form of acquisition that involves taking control of another organization without acquired firm’s agreement (Johnson, n.d.). The occurrence of a takeover will be welcome initiative when it comes to saving the company from bankruptcy. It can also be considered as a wrong step and unwelcome thus regarded as a hostile takeover. This happens when shares are purchased directly from shareholders or on the secondary markets (Johnson, n.d.). Another form of takeover includes; takeover Bid or corporate action that target particular company share to gain control over business; Poison Put; busted Takeover or corporate action that involves selling an acquired company asset to meet acquisition cost; whitemail; and hostile takeover. The takeover or absorption of Amity Bank Cameroon Plc by Atlantic Bank S.A. it is takeover that is still being contested by