Mergers & Acquisitions

Resources: Glossary

Don’t be confused or intimidated by any terms or abbreviations in the M&A world. You’ll find answers here.

Scalable

Definition

The ability to quickly grow a company without requiring a proportional additional investment in the business to support the growth.

Example

Most software and tech businesses, such as Uber and Airbnb, are highly scalable. Once software is created, millions of software licenses can be sold without requiring a large additional investment in equipment, employees, or buildings. By contrast, the retail segment of Starbucks is not a scalable model. To grow Starbucks 10 times would require a 10-fold investment in hard assets.