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What’s your Growth Profile? The Dimensions of Organic Growth

Posted By: Karen Fisman

We write regularly about growth through acquisition in our newsletter.  This week, however, we are shifting our focus to the importance of organic growth.  After all, as noted in the HBR article Creating an Organic Growth Machine, acquirers need to generate organic growth in the businesses they buy to make their acquisitions successful.  Cost synergies only go so far, generating cost savings that justify an acquisition premium in only 36% of transactions.

A recent McKinsey article examined the growth profiles of businesses that succeed at driving organic growth (“growers”).  Drawing on survey results of almost 600 executives in the EU and North America, the authors found that growth strategies and behavior fall into three broad profiles:

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