The paper studies external growth strategies of an enterprise – acquisitions and mergers, presenting a deeper insight into the complex components of these business activities. The conceptual definition of acquisitions and mergers explained at the beginning of the paper provides a clear understanding of these processes, while due diligence enables enterprises to maximize benefits and minimize risks. Motives leading to the initiation of acquisitions may vary, but are mostly driven by the desire for rapid profit growth and competitive advantage. It is not enough to merely make a decision to acquire an enterprise or merge with one, but it is necessary to draw up a plan for integrating the target company into the acquirer's system. Furthermore, external and internal factors, elaborated in detail in the paper, significantly influence the outcome of the process. Moreover, success greatly depends on transparent communication with employees during the transition, as well as proper financial planning and selection of adequate funding sources. Comparative analysis is formulated through specific examples such as Agrokor’s acquisitions and mergers of enterprises in the Republic of Croatia and globally renowned acquisitions by Johnson & Johnson. Ultimately, this paper highlights the importance of a thoughtful approach to acquisitions and mergers, pointing the need for comprehensive analysis and planning in order to achieve desired synergy.