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The Various Types of Mergers and Acquisitions

Mark W Schwartz

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Possessing a PhD in biochemistry who currently directs company operations and strategy at Neolight, Theracaine, Targazyme and MWS Strategic Advisors, Mark W. Schwartz concurrently serves as an adjunct faculty member in the Masters in Biotechnology program at San Jose State University. Galena Biopharma and Apthera, among other companies, have benefited from Mark W. Schwartz’s biotech-specific business acumen. One of his areas of expertise is mergers and acquisitions (M&A).

In general, M&A processes break down into two fundamental types: those that involve an outright purchase and those that involve consolidation. A purchase merger occurs when one company buys another for an agreed-upon sum and then incorporates the purchased company into its evolving business model. A consolidation merger, by contrast, occurs when two existing companies come together to form an entirely new entity. Other types of M&A arrangements include the horizontal integration of two companies that were previously in direct competition with one another and the vertical integration of a company and one or more of its customers and/or suppliers.