Danaher- The Making of a Conglomerate

DANAHER- THE MAKING OF A CONGLOMERATE

DEFINITION OF CONGLOMERATE •

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A number of dierent thing or !"rt th"t "re !ut or grou!ed together to form " #ho$e but rem"in ditin%t entitie& A conglomerate i " %ombin"tion of t#o or more %or!or"tion eng"ged in entire$( dierent buinee th"t f"$$ under one %or!or"te grou!) uu"$$( in*o$*ing " !"rent %om!"n( "nd m"n( ubidi"rie& Often) " %ong$omer"te i " mu$ti-indutr( %om!"n(&

HISTORY OF DANAHER •

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Formed in +,. b( /te*en "nd Mit%he$$ R"$e It gre# b( t"rgeting !ri*"te$( o#ned %om!"nie #ith et"b$ihed br"nd) !ro!riet"r( te%hno$og() high m"r0et h"re "nd room for im!ro*ement in o!er"ting !erform"n%e It "*er"ged +1 "%2uiition !er (e"r A%2uiition #ere %on%entr"ted in . "re"3 4re%iion %om!onent5%r"ftm"n h"nd too$6) "utomoti*e "nd tr"n!ort"tion) intrument"tion5ret"i$ !etro$ !um!6 "nd e7truded !rodu%t&

MOTIVATION FOR ACQUISITIONS D"n"her "%2uired " buine on$( if it er*ed one of the t#o !ur!oe9 •

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Platform establs!"# tra"sa$to"3 en"b$ed them to enter " ne# m"r0et& :ed to enter high gro#th m"r0et #here the %om!"n( #ou$d g"in %om!etiti*e "d*"nt"ge through o!er"tion"$ e7%e$$en%e %olt o" tra"sa$to"3 he$!ed in the trengthening of " !re-e7iting $ine& :ed t m"0e e7iting buinee more %om!etiti*e

%USINESS UNITS IN DANAHER •

Indutri"$ Te%hno$ogie egment Motion- Contro$ !$"tform 4rodu%t Identi;%"tion !$"tform Fo%ued Ni%he 5

"ero!"%e "nd defene) enor

"nd %ontro$6 •

4rofeion"$ intrument egment En*ironment"$ !$"tform3 Fo%ued on #"ter 2u"$it(

%utomer "nd !etro$eum ret"i$er E$e%troni% tet "nd me"urement !$"tform3 To boot

it ing$e digit m"rgin through %ot %utting inno*"tion "nd 2u"$it( •

 Too$ "nd Com!onent /egment Me%h"ni%< h"nd too$ !$"tform3 =" the %ore

buine of D"n"her "nd the em!h"i #" to m"0e it more %om!etiti*e #ith igni;%"nt ube2uent "%2uiition

%USINESS UNITS CONT&'& •

Medi%"$ Te%hno$og( /egment3 formed to re!ond to "tur"tion "nd $o# gro#th r"te in it tr"dition"$ !$"tform Dent"$ te%hno$og( !$"tform A%ute %"re !$"tform 4"tho$og( di"gnoti% !$"tform Life /%ien%e intrument"tion !$"tform

DANAHER ORGANI(ATION STRUCTURE •

Cor!or"te Te"m 8"ed "t H>) in%$ude de"$ m"0ing !e%i"$it) ;n"n%e "nd $eg"$ t"& It %ontro$$ed %or!or"te tr"teg() de%iding #hi%h %om!"nie to "%2uire "nd in #hi%h indutrie to in*et  The HR "nd $e"derhi! de*e$o!ment f"%i$it"ted identi;%"tion) t"?ng ) tr"ining "nd !rogreion of e7e%uti*e "%ro the entire %om!"n(

ORGANI(ATION STRUCTURE

DANAHER AQCUSITION PROCESS •

De"$ /our%ing "nd due di$igen%e& L"rge "%2uiition #ere initi"ted b( the H>) #hi$e the

bo$t on tr"n"%tion #ere initi"ted b( the buine unit& •

Criteri" for "%2uiition& 8"ed on both tr"tegi%5 m"r0et h"re $e"derhi!) br"nd

trength et%6 "nd ;n"n%i"$ 5!ri%e) E4/) free %"h@o# in e7%e of e"rning) et%6 %riteri"& •

4ot-merger integr"tion&  The te"m #" %h"rged #ith "$$ de%iion m"0ing " #e$$

" e7e%ution of !$"n reg"rding the t"rget  The( de%ided on #ho #" to t"( "nd #ho to "borb)

org"nied for tr"ining for ne# buine unitBhire) "imi$"ting !rodu%t $ine into the o!er"tion) e"r%hed for #"( to im!ro*e !erform"n%e in the m"nuf"%turing !ro%e) int"$$"tion of D"n"her