Examples Of Inorganic Growth

1. Describe two major ways in which a company can grow. Give examples to illustrate the two ways of growing.
The two major ways to grow a company is through inorganic growth which involves mergers and takeovers and organic which is increasing the turnover of the existing company.
An example of inorganic growth was Bibby Line Group 's acquisition of Garic Ltd in 2008. Garic is a plant and equipment hiring company to the construction industry. A merger usually involves combining two companies into a single larger company. The combination of the two companies involves a transfer of ownership, either through a stock swap or a cash payment between the two companies. In practice, both companies surrender their stock and issue new stock as a new company. http://www.investinganswers.com/dictionary/merger Another example is Disney & Pixar. The merger of the legendary Walt Disney and Pixar was a match made in cartoon heaven. Disney had released all of Pixar’s movies before, but with their contract about to run out after the release of “Cars,” the merger made perfect sense. With the merger in 2006, the two companies could collaborate freely and easily. The merger didn’t just enable the two to collaborate, but also helped to breath new air into Disney’s other divisions. First Tangled and more recently Frozen have garnered huge attention at the box office and beyond, with Frozen becoming the fifth-highest grossing movie ever.