Mergers & Acquisitions · M&A Concepts
Forward Vs Backward Integration
This problem asks you to distinguish between forward integration and backward integration within vertical integration.
Interview question
- Difficulty
- Easy
- Topic
- Mergers & Acquisitions
- Subtopic
- M&A Concepts
What this question trains
This question tests a core M&A concept, how a company can expand along its supply chain by buying businesses that are either closer to its inputs or closer to its customers. Interviewers ask about vertical integration to see whether you understand strategic rationale, supply chain positioning, and how acquisitions can change a company’s control over production, distribution, and customer access.
A strong answer requires the candidate to separate upstream moves from downstream moves and explain why each type might matter operationally and strategically in an acquisition context.