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Sagot :
The acquisition of a firm involved with a different production process stage than the bidder is called a vertical acquisition.
A vertical acquisition occurs when one business buys another that is a member of the same industry but operates at a different production level. A vertical acquisition's goal differs greatly from a horizontal acquisition's goal. A vertical acquisition's primary goal is to ensure the supply of essential items, prevent supply disruption, and limit supply to rival companies, in contrast to a horizontal acquisition, which seeks to lower costs and enhance profit.
For Example, a vertical acquisition is when a clothes firm buys a textile factory. While the latter is a part of the secondary sector and transforms raw materials into finished items, the former is a part of the tertiary sector and provides goods and services to consumers and businesses.
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