Organic growth
Also called: acquired growth, inorganic growth
Growth that comes from a company's existing business, as opposed to growth added by buying other companies.
Organic growth comes from selling more, charging more or entering new markets. Acquired, or inorganic, growth adds the revenue and profit of companies bought with cash, debt or shares, so it is not free. Organic growth is usually the better guide to the strength of the underlying business.
Learn more in these lessons
- Revenue and earnings growthHow should you measure whether a company is really growing?
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