External growth
A development strategy through acquisition of other companies, mergers, or equity stakes. It accelerates growth and acquires capabilities, brands, or market share faster than the organic route, at the cost of complex integration.
In practice
Most merger-and-acquisition research shows that 50 to 70 percent of deals destroy value for the acquirer, primarily because of overpayment or failed integration. Successful transactions share three conditions: a precise acquisition thesis, an integration plan prepared before signing, and a dedicated post-merger integration team. Cultural due diligence — often overlooked — is as decisive as financial due diligence.