Companies pursue inorganic growth for several reasons:
1. Market Expansion: By acquiring or merging with another company, businesses can enter new markets and geographies, rapidly increasing their market presence. 2. Diversification: M&A activities allow companies to diversify their product lines or services, reducing dependence on a single revenue stream. 3. Synergies and Economies of Scale: Combining operations can lead to cost efficiencies, shared resources, and elimination of redundant processes, resulting in higher profitability. 4. Competitive Advantage: Acquiring a competitor or a company with complementary strengths can provide a significant competitive edge in the industry.