Inorganic Growth
Short definition
Inorganic growth is sales and profit added via merger or acquisition. Goodwill, debt and integration add layers on top of organic NWC risk.
Detailed explanation
Acquired EBITDA may have paid the multiple before synergy arrives. Debt-funded growth can break DSCR temporarily.
Reported sales growth is mistaken for “success” until the inorganic slice is split out. Organic versus inorganic is the first line of the management pack.
Why it matters for the CFO
Mispriced inorganic growth destroys value; a sales record can cut ROE.
How to read it
Inorganic growth without synergy is paying an EV/EBITDA multiple. A post-close NWC true-up is a cash surprise.
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What to learn next
Definitions are educational. They are not investment, credit or tax advice.