Which growth strategy is most commonly associated with mergers and acquisitions?

The most commonly associated growth strategy with mergers and acquisitions is inorganic growth. This strategy refers to the expansion of a company through the acquisition of other businesses or merging with them, as opposed to growing through natural means such as increasing sales or expanding product lines, which would be considered organic growth. Inorganic growth allows a company to quickly scale operations, enter new markets, acquire new technologies or skills, and gain a competitive edge by integrating another company’s resources and customer base.

The concept of inorganic growth is significant in understanding how companies can rapidly enhance their market position. Mergers and acquisitions can also lead to synergies that improve efficiency and reduce costs, further supporting the rationale behind this growth strategy. In contrast, other strategies like organic growth focus on internal development, while horizontal growth pertains specifically to expanding within the same industry or market, and diversification involves entering new markets or industries, leaving mergers and acquisitions firmly aligned with inorganic growth.