alleryStart learning →A firm buying its former supplier is an example of
AConglomerate merger
BForward integration
CHorizontal merger
DBackward integration
Answer & Solution
Correct answer: D. Backward integration
Buying a supplier moves the firm up the value chain, which is called backward integration.
Keep practising Mergers Acquisitions and Corporate Restructuring
Browse all Mergers Acquisitions and Corporate Restructuring questions for CA Final, or explore more Strategicfinancialmanagement topics.
Related questions
In a management buy-in (MBI), the shares are bought bySenior LBO debt is secured and carriesWhich target suits an LBO best?Debt is cheaper than equity in an LBO since interestIn a leveraged buyout, the target's assets often serve asWhich US law requires shareholder votes on future golden parachutes?A golden parachute pays an executive onA gray knight is a bidder seen as