John, although others are almost certain to disagree (and that's OK), I view organic growth as internal growth, through existing customers, distribution channels, and internally developed products which are often the result of R&D efforts.
Growing through acquisition is not the same as organic growth, IMO. Although you could make the assertion that "we have always acquired business units as part of our growth strategy and hence, we view it part of our organic growth model", in truth, it is growth through mergers and acquisitions, which, if it produces shareholder value in the long term, is just fine.
Unfortunately, no company likes to make the statement that their business results are lagging or that the business lines they have always had are flat on a year to year basis. So when I hear that MSGI is on a $100M revenue run rate, and read their report, the expected growth appears to me to come from unspecified but anticipated acquisitions of external entities.
And it's OK that others feel differently about it, too.
Best regards and good investing,
Mark A. Peterson |
