Inorganic Growth

Filed Under »
Dictionary Says

Definition of 'Inorganic Growth'

A growth in the operations of a business that arises from mergers or takeovers, rather than an increase in the companies own business activity. Firms that choose to grow inorganically can gain access to new markets and fresh ideas that become available through successful mergers and acquisitions.
Investopedia Says

Investopedia explains 'Inorganic Growth'

Inorganic growth is seen often as a faster way for a company to grow when compared with organic growth. In many industries, such as technology, growth is often accelerated through increased innovation, and one way  for firms to compete is to align themselves with those companies that are developing the innovative technology.

Related Definitions

  • Organic Growth

    The growth rate that a company can achieve by increasing output and enhancing sales. This excludes any profits or growth acquired from takeovers, acquisitions or mergers. Takeovers, ...
    Read More »
  • Merger

    The combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stock.
    Read More »
  • Acquisition

    A corporate action in which a company buys most, if not all, of the target company's ownership stakes in order to assume control of the target firm. Acquisitions are often made as part ...
    Read More »
    • Takeover

      A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the acquiring company will make an offer for the outstanding shares.
      Read More »
    • Erosion

      The gradual redirection of funds from profitable segments or projects within a business to new projects and areas. Although managers almost always consider money flowing into new ...
      Read More »
    • Hostile Takeover

      The acquisition of one company (called the target company) by another (called the acquirer) that is accomplished not by coming to an agreement with the target company's management, but ...
      Read More »
    • Target Firm

      A company which is the subject of a merger or acquisition attempt. A takeover attempt can take on many different flavors, depending on the attitude of the target firm toward the ...
      Read More »
    • Sleeping Beauty

      A company that is considered prime for takeover, but has not yet been approached by an acquiring company. A company may be considered a sleeping beauty for a variety of reasons, ...
      Read More »
    • Mergers And Acquisitions - M&A

      A general term used to refer to the consolidation of companies. A merger is a combination of two companies to form a new company, while an acquisition is the purchase of one company by ...
      Read More »
    • Growth Rates

      The amount of increase that a specific variable has gained within a specific period and context. For investors, this typically represents the compounded annualized rate of growth of a ...
      Read More »

Articles Of Interest

Partner Links