In the business world, there are two generic ways a company can grow. One is the organic way, where the company grows independently without merging or acquiring other companies. This type of growth is slower but helps in building a strong foundation for the company.
Another is the inorganic way, where the company grows by merging or acquiring other companies. This kind of expansion is achieved through an M&A deal. M stands for the merger, and A stands for acquisition. When a company buys another company we call it an acquisition, and when a company merge with another company we call it a merger.
Inorganic growth is faster. As one company acquires another company, it gets immediate access to the acquired company’s customer base, distribution channels, production capacity, researched data and so on. It would have taken many years to achieve this position for the buying company in the organic way.
