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  • November 2019 (Revised April 2021)
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United Technologies: Are the Parts Worth More Than the Whole?

By: Benjamin C. Esty and Daniel Fisher
  • Format:Print
  • | Language:English
  • | Pages:23
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Abstract

After spending more than 50 years creating a diversified industrial conglomerate that Fortune magazine described as “arguably the most profitable conglomerate in America” in 2014, UTC’s CEO Greg Hayes was under pressure from activist investors (Dan Loeb and Bill Ackman) to break the company into three standalone businesses in the spring of 2018. The activists claimed that a breakup would create at least $20 billion of incremental value (on top of a current market value of approximately $100 billion) and possibly a lot more. Hayes must decide whether a breakup makes sense—will it create value and, if so, how much value and why? What factors determine whether a conglomerate trades at a discount or a premium, and how big are those discounts and premiums likely to be?

Keywords

Corporate Strategy; Business Conglomerates; Financial Management; Corporate Governance; Organizational Structure; Investment Funds; Value Creation; Aerospace Industry; Electronics Industry; Industrial Products Industry; United States

Citation

Esty, Benjamin C., and Daniel Fisher. "United Technologies: Are the Parts Worth More Than the Whole?" Harvard Business School Case 220-018, November 2019. (Revised April 2021.)
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About The Author

Benjamin C. Esty

Finance
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Related Work

    • November 2019
    • Faculty Research

    United Technologies Corp.: Are the Parts Worth More Than the Whole?

    By: Benjamin C. Esty and Daniel Fisher
    • November 2019 (Revised April 2021)
    • Faculty Research

    United Technologies: Are the Parts Worth More Than the Whole?

    By: Benjamin C. Esty and Daniel Fisher
Related Work
  • United Technologies Corp.: Are the Parts Worth More Than the Whole? By: Benjamin C. Esty and Daniel Fisher
  • United Technologies: Are the Parts Worth More Than the Whole? By: Benjamin C. Esty and Daniel Fisher
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