Concentric Mergers

Concentric mergers occur when two companies at different stages of the supply chain come together to complement each other’s strengths. For example, a manufacturer might merge with a distributor to improve efficiency and enhance market reach. This type of merger allows both companies to benefit from shared resources, expand their product offerings, and better serve customers. By joining forces, they can strengthen their competitive position in the market, reduce costs, and increase overall profitability. Concentric mergers help businesses grow strategically by linking related but distinct operations.