Question

Several years ago, Regis Corporation, a very large hair styling salon company, purchased 60 "Your Father's Mustache" salons. Although this was initially an acquisition, the merging of these two businesses was a(n) __________. Regis went on to purchase several hair care product companies. Joining forces with hair care product companies would represent a ___________.

Answer 1

Answer:

The correct answers for the first blank is horizontal merger and  for the second blank is vertical merger

Explanation:

When Regis corporation merged with the your father's mustache salons, this type of merger is know as horizontal merger , which is a type of merger where two corporations or firms who are in same industry and are competing with each other for the same market , comes together and merge with each other that merger is called horizontal merger.

But when Regis corporation went on to merge with the hair product corporations that would mean that it is a vertical merger , which is that type of merger where two corporations joins their forces together at a different production stages related to business. An example of this merger can be like a manufacturer of goods merging with supplier of his goods.