Publications
Publications
- September 1991 (Revised March 2005)
- HBS Case Collection
WPP Group and Its Acquisitions
By: William J. Bruns Jr.
Abstract
WPP Group acquired J. Walter Thompson and Ogilvy & Mather, paying high premiums in relation to earnings. In each acquisition the goodwill acquired was immediately charged off against owners' equity. Then, WPP Group established a value for the brand names of the two companies. The value totaled $350 million. The case describes the brand valuation process, the differences between U.K. and U.S. accounting methods, and motivation for the transaction.
Keywords
Goodwill Accounting; Accounting; Brands and Branding; Product Positioning; Market Transactions; Equity; Private Equity; Relationships; Mergers and Acquisitions; Management Style; Consumer Products Industry; United States; United Kingdom
Citation
Bruns, William J., Jr. "WPP Group and Its Acquisitions." Harvard Business School Case 192-038, September 1991. (Revised March 2005.)