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2. Why does organic growth often creates more value than growth from acquisitions? Describe how different...

2. Why does organic growth often creates more value than growth from acquisitions? Describe how different types of organic growth might create different amounts of value?
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Answer #1 
Organic. growth mostly. have the highest. returns. because they  require. very less new capital; companies. may  add new. products to. existing distriburion. systems and lines. investment. are not. required in. bulk  can. be reduced. Acquisitions. require the. entire transaction. be made up. front. The return. is often. only slightly. higher than the cost. of capital. and value. is only created. by overlaps/synergies. that result. in revgrowth, cost reductions, or better. capital. allocation .It also. does not. reflect the. risk of failure. Acquisitions. already have. a working model. with cash. flows while. organic growth may consist. of failure. and development. costs.

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