Organic Growth


DEFINITION of '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, acquisitions and mergers do not bring about profits generated within the company, and are therefore not considered organic.


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BREAKING DOWN 'Organic Growth'

Organic growth represents the true growth for the core of the company. It is a good indicator of how well management has used its internal resources to expand profits. Organic growth also identifies whether managers have used their skills to improve the business.

  1. Acquisition

    A corporate action in which a company buys most, if not all, ...
  2. Erosion

    The gradual redirection of funds from profitable segments or ...
  3. Critical Mass

    A very important or crucial stage in a company's development, ...
  4. Merger

    The combining of two or more companies, generally by offering ...
  5. Growth Rates

    The amount of increase that a specific variable has gained within ...
  6. Mergers And Acquisitions - M&A

    A general term used to refer to the consolidation of companies. ...
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