There are several reasons why companies might decide to pursue vertical acquisitions:
1. Cost Reduction: By acquiring suppliers or distributors, companies can reduce costs associated with procurement and logistics. 2. Control Over Supply Chain: Greater control over the supply chain can lead to improved efficiency and reliability. 3. Competitive Advantage: Owning multiple stages of the supply chain can provide a competitive edge over rivals who rely on external suppliers or distributors. 4. Market Power: Vertical acquisitions can increase a company's market power by controlling more aspects of the industry. 5. Diversification: It can also help companies diversify their revenue streams and reduce dependence on a single segment of the industry.