Organic growth is the increase in a company’s revenue and value due to internal operations. This is in contrast to inorganic growth, which is brought about by mergers, acquisitions and non-operational increases such as gains from foreign exchange trading.Organic growth demonstrates a company’s true potential. It shows that the company’s managers are using physical and intangible assets to increase revenue and net profits so that shareholder value increases. With regard to physical assets, organic growth means that managers are using the machinery and equipment more efficiently to make a profit. But it’s the intangible assets where managers really make their mark. The intangible assets that best help a company achieve organic growth usually consist of the collective skills and knowledge of the company’s management and employees. These skills are used to create new products, or devise new operating procedures that increase revenue and net profits. Organic growth generated from this type of behavior is a good indication that a company is well managed, and is using its assets to their highest and best use.