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External growth strategies gain widespread approval
Posted On 05 May 2015
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A majority of executives believe that their external growth operations have been beneficial for their companies.
As “inorganic growth” operations have become more difficult to finance, the audit firm Grant Thornton, in partnership with Medef, has released an Ifop study conducted among 1,004 French executives. According to the findings, 93% of business leaders report being satisfied with this type of transaction: acquiring another company or business unit would be beneficial for brand image (90% of respondents) as well as for financial performance, since 74% believe that inorganic growth accelerates and supports the company’s “organic” growth.
For respondents, however, innovation or international expansion do not necessarily require acquiring another company. Reflecting a certain degree of economic gloom, only 45% are considering an acquisition over the next five years.
