Definition of Inorganic growth:
One of the most important measures of performance for fundamental analysts is growth, particularly in sales. Sales growth can be the result of promotional efforts, new product lines and improved customer service, which are internal, or organic, measures. .
Inorganic growth arises from mergers or takeovers rather than an increase in the company's own business activity. Firms that choose to grow inorganically can gain access to new markets through successful mergers and acquisitions. Inorganic growth is considered a faster way for a company to grow compared to organic growth.
Growth in a companys operations that is due to mergers or takeovers as versus from an increase in the actual business activity of the company itself. Companies that decide to expand inorganically can have access to new markets due to these mergers or acquisitions.
How to use Inorganic growth in a sentence?
- The downside of inorganic growth via acquisitions is that implementation of technology or integration of the new employees can take time.
- Acquisitions can help immediately boost a company’s earnings and increase market share. .
- Inorganic growth is growth from buying other businesses or opening new locations. .
- Meanwhile, organic growth is internal growth the company sees from its operations, often measured by same-store or comparable sales. .
- Inorganic growth involving the opening of new stores can capitalize on high-traffic areas, but it can also cannibalize existing stores. .
Meaning of Inorganic growth & Inorganic growth Definition