Organic Business Growth
Organic business growth, as opposed to inorganic business growth, is dependent on internal operations as opposed to achieving it by means of mergers and acquisitions. Organic business growth relies on the generation of profits to finance the growth of the company making it a far slower process than expanding the business by means of mergers and acquisitions. While a slower process, the advantage to organic growth) is that it does not require a cash investment. While every business seeks to grow organically, not all business owners are willing to wait as long as it may take to achieve the owner's goals.
Growth Company
A growth company is a company that generates substantial cash flow, but pays no dividends or distributions to the owners, instead opting to reinvest all cash ftow back into the company in order to maximize the growth of the company and future profits. A growth company tends to have very profitable investment opportunities for its core retained earnings. Growth .companies are often referred to as Gazelle Companies.
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