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Showing posts from May, 2014
Danaher - Mergers & Acquisitions Danaher grew inorganically with acquisitions. They own multiple platforms ranging from industry tools, instrumentation, environmental, life sciences and dental. They have essentially moved up the value chain moving into more niche markets. The high level strategy is to buy a new Platform and look for Bolt On's and Adjacencies for the existing platforms. DHR has a 20 year history of delivering their shareholders returns better than S&P 500 with a difference of 2769% over this time (S&P grew 484% and DHR 3251%). Danaher sets a flat Cost of capital to about 10% to reduce the complexity and help analyze the return on the investment as most of the cash comes from the free cash flow. Danaher has top line growth of 12-15% and even during the 2008-2009 recession time it still maintained about 8% as they people were still drinking coke and buying pampers. Danaher's revenue base is distributed broadly and overall portfolio of indus