For more than three decades, Thomas Finke has been working in the investment and banking industries. He previously worked as the vice president of Bear Stearns and as the chief investment officer of MassMutual. Now the CEO and chairman of Barings LLC, Thomas (Tom) Finke was instrumental in the successful merger that created Barings several years ago.
Company mergers come in five common types:
1. Conglomerate - When two companies that operate in completely different industries merge. Mixed conglomerates involve companies that seek market or product extensions, while pure conglomerates involve firms with nothing in common.
2. Vertical - When the companies involved work within the same supply chain but at different levels of the supply chain. For example, one company handles production while the other handles distribution.
3. Market extension - When the purpose is to give the merging companies a larger client base and market. The companies usually sell the same product but to different markets.
4. Horizontal - When the companies involved are in the same industry, are in direct competition, and offer the same product or service.
5. Product extension - When the companies involved operate in the same market. The products or services they offer are different but related.
