The sum that multiplies: inorganic growth as a strategy to face the crisis.

Tempo de leitura:

Merger and acquisition operations are alternatives to grow quickly, take advantage of the internal scenario and protect yourself from the global recession that is coming

The financial market in Brazil has its attention focused on inflation, the shortage of supplies and the risk of recession that plague the global economy. The time to look for alternatives to manage possible impacts is now, and inorganic growth is one of them.

Resilient to rains and thunderstorms, the Brazilian economy presented good results in the third quarter of this year. The Ibovespa index rose 11.7% in reais and 7.2% in dollars during the period.

Even so, the international scenario was an important element for the earnings per share estimates on the Brazilian stock exchange to be revised downwards. The projection for the next 12 months, 2023 and 2024, changed from 0.2% to -1.8%.

Entrepreneurs may ask themselves: what is the best strategy to take advantage of the internal landscape without losing sight of the threats of the external environment? One of the answers is to bet on inorganic growth and strengthen itself in the face of the approaching crisis.

“Inorganic growth is when your company merges with other companies in some way and the resulting operation becomes larger than the separate parts. Your company grows from this union and no longer just through your usual business”, explains Senior Partner at Pipeline Capital, Pyr Marcondes.

The immediate benefit is reaching growth targets faster than flying solo. For Marcondes, inorganic growth “is an anabolic steroid and accelerator, reducing the time curve for expansion and development of your business”.

Mergers and acquisitions are the most common examples of inorganic growth. It doesn’t matter if the original company is selling, acquiring or participating in a merger. The essential thing is to be aware that any organization can benefit from the operation. “Alternatives that every businessman and every company needs to keep in mind at all times, even more so at a time like the one we are living in”, adds Marcondes.

Therefore, it is not the size of the organization, or the sector in which it operates, that will provide growth. It is necessary to make the calculation, to make sure that the result will be what Marcondes calls “a sum that multiplies”. In other words, ending a process where those involved will leave greater than they entered.

Follow news through the website
and also from LinkedIn
and Instagram


Últimas Postagens

Pipeline Capital and launch the first interactive Scape Report

Pipeline Capital, a global technology-focused merger and acquisition company, creator of the Scape Reports, which have consolidated themselves as a guide to business opportunities

Positive turning point in climate tech control

On a day with unseasonably high temperatures in New York, record rains in the Bay Area, and warnings that skiing could disappear in parts

The ABCs of investments

Note: Use this material as a guide, the value ranges tend to change a lot depending on the segment and even the style of

Only cryptography ensures our citizenship

Text by Pyr Marcondes, Senior Partner at Pipeline Capital The fact is that more and more there will be very little we can do

The executive summary of Tech Trends.

Text by Pyr Marcondes, Senior Partner at Pipeline Capital. The 2023 version of the annual Tech Trends study that the Future Institute releases every

82.9% of companies have Venture Capital initiatives in Brazil

71.4% of the companies have the objective of implementing a program through the hiring of specialized consultancies. A survey carried out by the Brazilian

Connect to the best of M&A world Subscribe to our Newsletter

Pipeline Podcast “Papo de M&A”

Pipeline Capital’s podcast on mergers and acquisitions, innovation and technology.