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:
- 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.
- 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.
- Exploring the competitive advantages of the company when entering a new sector that requires new skills ...