From the course: Managing Your Cybersecurity Program through a Merger or Acquisition

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Different types of inorganic growth: Definitions

Different types of inorganic growth: Definitions

- [Instructor] There are several ways a business can achieve inorganic growth to help in restructuring and meeting their strategic growth goals. You might hear terms like merger, joint venture, strategic alliance, or divestiture. Let's cover them one by one with examples. An acquisition is when a financially strong company acquires another one for financial or strategic reasons. For example, in 2021, Amazon acquired the self-driving car company, Zoox, for over $1 billion. This was a strategic acquisition by Amazon to expand its presence in autonomous vehicle market. A divestiture on the other hand is when a company sells some of its assets or business units by selling or closing them down if it is not aligned to its strategic growth plans. This occurred in 2020 when IBM sold its managed infrastructure services business to the private equity firm, Kyocera, for $2 billion. This divestiture allowed IBM to focus on its…

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