INORGANIC GROWTH STRATEGIES

Anonymous A asked on Aug 18, 2018 - 3 answers

The inorganic ways to grow refers only to M&A?

Can also state Joint Venture, Partnerships, Collaborations ...?

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Anonymous B replied on Aug 19, 2018

Some other ideas...white label, license agreement, outsourcing

Vlad
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Hi,

The criteria for inorganic growth is if the deal has the equity component. Simple marketing partnerships are the means of organic growth.

Inorganic growth can be done in two ways:

  • Vertical - M&A, JV, etc with suppliers / distributors / retailers
  • Horizontal - M&A, JV, etc with the players in the same market

Best!

Hemant
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replied on Aug 18, 2018
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Organic growth just means growing the company's capitalization by using its internal resources that sits either above the line (COGS) or below (Ops) in the P&L. Inorganic is growing the capitalization by all other means, usually M&A, JV, and partnerships that involve some form of revenue share. I wouldn't call all partnerships "inorganic", especially channel partnerships where the channel is a VAR / value added reseller.

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