Journal of Finance Vol. 47 No. 3 1992
Beatrice: A Study in the Creation and Destruction of Value
Abstract
This paper chronicles the history of the Beatrice company from its founding in 1891 as a small creamery, through its growth by acquisition into a diversified consumer and industrial products firm, and its subsequent leveraged buyout and sell-off. The paper analyzes the value consequences the firm's acquisition and divestiture policies, its organizational strategy, and its governance. The analysis sheds light on a number of issues in organization theory, strategy, and corporate finance, including the sources of value in diversifying aquisitions, the cost of over-centralization and weak corporate governance, and the mechanisms of value creation in the market for corporate control.
- DOI
- 10.2307/2328978
- Volume
- 47
- Issue
- 3
- Pages
- 1081
- Sources
- openalex crossref