What type of transaction does the majority of U.S. Mergers and Acquisitions involve?

The majority of U.S. Mergers and Acquisitions involve one competitor buying another competitor. This is often referred to as horizontal integration, where companies operating at the same level in the industry come together. This strategy allows firms to grow their market share, eliminate competition, and achieve economies of scale.

In the competitive landscape, acquisitions between rivals help organizations consolidate their positions, enhance their product offerings, and access new customer bases. This type of acquisition is particularly prevalent in industries like technology, pharmaceuticals, and consumer goods, where gaining competitive advantages and expanding market reach is critical.

While acquisitions involving suppliers, startups, or mergers of equals do occur, they represent a smaller portion of M&A activity compared to horizontal acquisitions. Acquisitions in vertical integration (suppliers) or partnerships with startups usually focus on different strategic goals, such as enhancing supply chains or innovation, rather than straightforward competition between established firms.