In recent years, how have large and medium-sized event companies expanded?

• A. By expanding into new markets internationally only
• B. By reducing staff and closing offices
• C. By franchising venues exclusively
• D. By targeted acquisitions, including horizontal and vertical integration

Answer: (D)

Growth for large and midsize event companies often comes from targeted acquisitions that blend horizontal and vertical integration. Horizontal integration means buying similar firms to gain greater market share, broaden service offerings, and realize economies of scale—you grow by adding peers or competitors and standardizing what you deliver. Vertical integration involves bringing in different parts of the supply chain—such as production crews, venues, décor and staging services, ticketing tech, or other suppliers—so the company controls costs, quality, and scheduling across events.

Choosing targeted acquisitions allows a firm to quickly expand geographic reach, deepen capabilities, and offer end-to-end solutions that clients increasingly expect. It’s a way to grow faster and more cohesively than simply entering new markets on a branch-by-branch basis or cutting costs through layoffs, which don’t build the same long-term capacity or value.