External (Inorganic) Business Growth Flashcards
All 4 cards in this deck
What is external (inorganic) growth?
Growth achieved by joining with another business, through a merger or a takeover.
What is a merger?
Two businesses agree to join together to form one new, larger business.
What is a takeover?
One business buys a controlling interest (over 50% of the shares) in another business.
Give one drawback of growing by merger or takeover rather than organically.
Competition laws may prevent further merger and takeover activity, constraining growth.