What does inorganic growth primarily involve?

Inorganic growth primarily involves mergers and acquisitions, which are strategies that companies use to expand their reach, resources, and capabilities by acquiring or merging with other businesses. This approach allows a company to quickly gain market share, enter new markets, or access new technologies and expertise that may not be obtainable through internal development alone.

Unlike organic growth, which focuses on expanding through existing operations and internal initiatives, inorganic growth leverages external opportunities to achieve rapid diversification and scaling. This can include purchasing a competitor to reduce market competition or acquiring firms in different industries to create a more diverse portfolio. The emphasis on mergers and acquisitions as a pathway for rapid expansion highlights the strategic nature of inorganic growth in driving significant changes within a company's structure and market presence.