W h y s o m e c o m p a n I e s m a k e t h e
S PE CIA LANA L Y SIS UNITS
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- A c q u is it ions and Divestitures
| S PE CIA LANA L Y SIS UNITS We undertook a series of special analysis units. These units were designed to shed light on the question of good to great by systematic comparison and where possible) quantification of variables between the good-to-great companies and the comparison companies. A c q u is it ions and Divestitures This analysis unit sought to understand the role of acquisitions and divest- ments in the transition from good to great. 1. What is the quantitative difference in acquisitions and divestments, if any, between the pretransition and posttransition eras for the good-to-great companies 2. How do the good-to-great companies differ in acquisitions and divestments from the comparisons 3. How do the good-to-great companies differ in acquisitions and divestments from the unsustained comparisons To do this analysis, we created a database for each company, year by year 1. List of acquisitions made during the year and their financial attributes. 2. Total number of acquisitions made during the year. Appendix 3. Total combined size of all acquisitions made during the year. 4. List of divestments made during the year and their financial attributes. 5. Total number of divestments made during the year. 6. Total combined size of all divestments made during the year. Using this data, we did eight major analyses 1. Good-to-great companies pre- and posttransition. 2. Good-to-great companies versus comparison companies pre- and 3. Unsustained transition companies pre- and posttransition decades. 4. Summary pre- and postdecade analysis good-to-great companies versus direct comparisons versus unsustained comparisons. 5. Good-to-great companies transition date to present. 6. Good-to-great companies versus comparison companies transition date to 1998. 7. Unsustained comparisons transition date to 1998. Do the same analysis as for the good-to-great companies from transition date to 1998. 8. Summary, transition date to 1998: good-to-great companies versus direct comparisons versus unsustained comparisons. In addition, this analysis looked at the qualitative aspects of acquisitions and divestitures, examining questions such as 1. Overall strategy of acquisitions. 2. Overall strategy of integrating acquisitions. 3. The ultimate success of each major acquisition. 4. Ultimate success of the overall acquisition strategy. Download 3.69 Mb. Share with your friends:
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