The most important component of any business is its further development strategy. In general, the business development strategies are divided into strategies of organic growth and development strategies through mergers and acquisitions. Organic growth strategies include a set of actions aimed at improving the company's own position in the existing market, searching for new markets for existing products or developing new products or new activities. However, not always developed strategies of organic growth give the desired economic long-term effect.
Business development strategies through M&A imply the performance by the company of one of the types of mergers and acquisitions transactions. In contrast to the organic growth the development through M&A is more expensive because of the need to invest in the purchase of a new asset. But, at the stage of purchasing a ready-made business the owner can analyze the specific benefits of the proposed M&A transaction. Another advantage of the growth strategy through mergers and acquisitions is the reduction of term for getting the economic result from the transaction. Regardless of how the company is developing - organically or through M&A transactions - each of these directions is analyzed and conclusions about the appropriateness of a particular growth strategy for the company are drawn.