The term „acqui-hire“ refers to acquisitions in which the acquirer attempts to acquire the talents of the target company and not their products (often hired as part of the acquisition to allow the team to focus on projects for its new employer). In recent years, such acquisitions have become commonplace in the technology sector, where large web companies like Facebook, Twitter and Yahoo! have often used talent acquisitions to increase their workforce in certain areas with know-how.   In 2000, there was a remarkable vertical merger between America Online and Time Warner. The transaction was considered a vertical merger because of each company`s various activities in the supply chain – Time Warner provided information on CNN and Time Magazine, while AOL disseminated information on the Internet. The total value of mergers and acquisitions increased for the third consecutive year in 2018 to more than $3.89 trillion. A vertical merger is followed by two companies that, although they do not compete, exist in the same supply chain. An automotive group joining a parts supplier would be an example of vertical fusion. Such an agreement would allow the automotive sector to obtain better prices for parts and to better control the manufacturing process. The components sector, on the other hand, would ensure a constant fluidity of activity. It is a horizontal merger between companies in the same sector. Concentration is usually part of the consolidation between two or more competitors offering the same products or services. Such concentrations are common in sectors where there are fewer firms and the goal is to create a larger company with greater market share and economies of scale, as competition between fewer firms tends to be stronger. The merger between Daimler-Benz and Chrysler in 1998 is considered a horizontal merger.
From a legal structure perspective, a merger transaction in sight or vice versa may be an asset purchase, a share purchase, a merger in the front or vice versa. In the event of an asset purchase, share acquisition, merger in the future or triangular merger in the future, the acquisition company remains in control. In the case of a reverse or reverse triangular merger, the shareholders and management of the target company gain control of the takeover company. In the case of a merger, two companies are grouped into a single entity. In the event of an acquisition, one company or group of investors buys another. Companies merge for strategic reasons to improve the overall performance of the merged entity by reducing costs, eliminating overlapping activities, improving purchasing power, increasing market share or reducing competition. The desired growth of the company, the expansion of product ranges and the rapid acquisition of new markets, technologies or management skills are additional motivations. Another reason for the merger is financial restructuring – cost reduction, unit sales, employee layoffs and refinancing of the company to increase shareholder value. From a legal point of view, a merger is a legal consolidation of two entities to one, while an acquisition occurs when an entity takes ownership of shares, interests or assets of another entity.
From a commercial and economic point of view, both types of transactions generally result in the consolidation of assets and liabilities within a company, and the distinction between a „merger“ and an „acquisition“ is less clear. A legally structured transaction as an acquisition may result in the activity of one party moving to indirect ownership of the other party`s shareholder, while a legally structured transaction as a merger may grant partial ownership to the shareholders of each party and control of the merged entity.