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Avago Technologies Ltd (AVGO): Growing by Acquisition

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Writer Bitech Comment 0 Query 3,378 Date Created 20-07-08 10:47


Most companies are founded with one or two employees. If they offer a good product or service at a competitive price, they expand, and grow their client numbers. As a result of more clients, businesses invest more money in hiring, training and developing new employees, and small businesses become medium sized enterprises of 50 – 500 people. 

If the product or service has wide reach and customers, a small minority of firms have the option of growing beyond this medium-size to become large corporations. But once businesses become large corporations, their ability to grow naturally by selling more of the same product or service becomes limited. This natural growth is known as “organic growth”. Where organic growth stalls, shareholders, and options trading companies look to management to provide new avenues of growth. One of the major ways companies can accomplish this is through acquiring other companies and adding their products and services to their own 


Source: https://www.smarteranalyst.com/most-popular/avago-technologies-ltd-avgo-growing-by-acquisition/