Advise the Board of Company A which of the following acquisitions is most likely to achieve the stated aim of vertical integration?

Company A is a listed company that produces pottery goods which it sells throughout Europe. The pottery is then delivered to a network of self employed artists who are contracted to paint the pottery in their own homes. Finished goods are distributed by network of sales agents.The directors of Company A are now considering acquiring one or more smaller companies by means of vertical integration to improve profit margins.

Advise the Board of Company A which of the following acquisitions is most likely to achieve the stated aim of vertical integration?

A. A company in a similar market to Company A.

B. A pottery factory in the Middle East.

C. A company that produces accessories.

D. A listed international logistics firm.

Answer: D