Increasing the company's size, increasing product differentiation ... Buying another business, or acquiring another firm, can be accomplished in two different ways: vertical and horizontal mergers.

The acquired company becomes part of the acquiring company, like a subsidiary or division. There also are other types of M&A transactions: Horizontal mergers ... very similar products or services.

Horizontal integration occurs when ... in unrelated markets join together through a takeover or merger. Sometimes called conglomerate integration, this enables businesses to spread their risk ...