2.  1) Types of M&A and definition of vertical merger  2) Types of vertical integration.  3) What for?  4) Advantages and disadvantages

3.  Horizontal mergers  Vertical mergers  Conglomerate M&A

5. A vertical merger occurs when two or more firms, operating at different levels within an industry's supply chain, join their efforts. As an example, an automobile company may purchase a tire manufacturer or a glass company.

6. Raw materials Intermediate manufacturing AssemblyDistributionEnd User Raw materials Intermediate manufacturing Assembly DistributionEnd User Raw materials Intermediate manufacturing Assembly Distribution End User No integrationBackward integrationForward integration

7. Miners ProcessersTradersCustomers Integrated Resources Producers Traders Customers Integrated Mining/Processing/Trading companies Customers Traditional Value Chains (pre 1990) Resource Driven Value Chains (1990-2010) Customer Driven Value Chains (post 2010)

8. Most often the logic behind the merger is to increase synergies created by merging firms that would be more efficient operating as one. This results in economy of scale and increases profit sharply.

9. Increased production Lowered fixed costs and lower price More affordable product Higher market share and revenues More money to spend on production

10.  cutting costs  competitive edge  reducing dependence on suppliers o company’s finances get tied up o company orients only on its own resources o the balance of capacities is becoming difficult to keep