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The Archibald Corporation is a related diversifier with four main business units. The figure (attached) contains selected financial data for these units as well as
The Archibald Corporation is a related diversifier with four main business units. The figure (attached) contains selected financial data for these units as well as for focused rivals of each division. Based on the information provided, would you recommend that Archibald Corporation consider a break-up, i.e. divestiture of one or more these business units? Why or why not? (financial info attached). Business Unit A Business Unit B Business Unit C Business Unit D Revenue 400m $100m $500m $500m Profit Margin 10% 5% 15% 2% Total Assets Avg. ROA of Focused Rivals $400m 18% $100m 2% $400m 14% $80m 5%
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