Just about every business out there once started with the goal of being the best, which is certainly a fine bar to shoot for, even if it is a little light on specifics.

But along the way, some companies discover the power of a business merger, and how, instead of trying to stomp out the competition, both organizations find ways to combine resources to become even more of a powerhouse in their market sector – or even push into new sectors.

Business mergers can take several forms, depending on what details get hammered out by each company. Sometimes outside consultants and even government regulators must sign off on a merger, especially if both companies are already have a large footprint by themselves.

Business mergers can include:

Horizontal

Here, at least two businesses that offer similar products and services at similar scales come together. A good example of this is Exxon-Mobil, where two multi-national oil producers expanded their global reach, and also kept both company’s names.

Vertical

This type of merger occurs when at least two companies don’t necessarily directly compete, but are often in the same or similar supply chains. Examples can include AT&T and Time Warner. One company focuses on infrastructure and digital delivery, and the other offers content and programming, so both companies can benefit.

Conglomeration

In this case, companies that don’t necessarily have anything to do with each other in the same market sectors  or even a collection of several smaller companies come together under one umbrella company. The Walt Disney Company is a good example – not only does it maintain its own entertainment, theme parks and products but created mergers with popular brands such as Lucasfilm, Marvel and ABC.

Mergers may make sense if a company reaches a certain level and notices that a competitor or another company does a better job at an area that it is lacking. Or if some company founders and leaders are interested in departing but want to ensure the company remains viable.

Companies seeking financing options to pursue growth and even mergers can contact Blackwater Capital Funding.