- Inorganic growth is growth through the purchase of other businesses or the opening of new offices.
- Meanwhile, organic growth is the internal growth a company sees in its operations, often measured by same-store or like-for-like sales.
- Acquisitions can help to immediately increase the company’s profits and increase market share.
- The downside of inorganic growth through acquisitions is that it can take time to adopt technology or integrate new employees.
- Inorganic growth associated with new store openings can benefit from high traffic areas, but it can also cannibalize existing stores.