Approximately what percentage of Mergers and Acquisitions deals involve competition buying another or a company buying a similar product line?

In the context of mergers and acquisitions, a significant percentage of deals typically occur in the form of competition buying another company or a company expanding its product line with similar offerings. This practice is often referred to as horizontal integration, where organizations seek to consolidate their market position, increase market share, or achieve economies of scale by acquiring competitors or companies within the same industry.

Choosing approximately 70% reflects a common statistic within industry analyses, indicating that this strategic approach is quite prevalent among companies looking to enhance their operations. Companies often pursue acquisitions of direct competitors to eliminate competition, expand their customer base, or diversify their product range. This trend is supported by studies and market analyses that show a high frequency of such transactional behavior in various industries.

The other percentages listed may suggest lower engagement in similar strategic acquisitions, which does not align with prevailing trends in M&A activity regarding competition and product line enhancements. Thus, selecting 70% as the approximate percentage aligns with the significant frequency at which these types of deals occur in the marketplace.