15.6. External Growth

As stated previously, it is possible to realize an expansion investment through internal and external growth.

There are three main reasons for external growth:

  1. Reinforcing the competitive advantages of the company to strengthen its distinctive skills in the existing activities and businesses — Acquisitions usually involve firms operating in the same markets with similar products and services.
  2. Expanding competitive advantages to improve and extend the company’s distinctive skills to neighboring sectors — Companies targeted for acquisition usually offer products and services with technological and marketing elements.
  3. Exploring the competitive advantages of the company when entering a new sector that requires new skills ...

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