Dilemma: Organic Growth or Acquisition?
A Greek Bank Crosses The Borders and Goes International.
Two Case Studies: Acquisition in Serbia and Organic
Growth in Albania. Compare and Construct
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Abstract
This paper intends to compare and contrast the strategy of organic growth against the
one of acquisition in the case of a bank which decides to cross the borders and expand to
foreign countries. In order to analyse this dilemma this study will examine which are the most
important variables when an acquisition is under consideration, which are the factors that lead
to the choice of organic growth, despite the fact that organic growth is most of the times
translated into a slower paced growth and what is the role of the macroeconomic environment
and the influence of the regulatory framework of each country. Furthermore, this paper
discusses which are the most important data that a bank should take into account in order to
make that decision and under which circumstances it is worth to take the chance to proceed to
an acquisition or insist on organic growth. For that cause we will examine the case of Alpha
Bank, which is a Greek bank and has faced this dilemma during its expansion to South East
Europe