More search options
Basket icon
No items
Basket icon

Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.
Case
-
Reference no. 9-192-038
Subject category: Finance, Accounting and Control
Authors: William J Bruns Jr (Harvard Business School); Susan Harmeling (Harvard Business School)
Published by: Harvard Business Publishing
Originally published in: 1991
Version: 28 March 2005
Length: 19 pages
Data source: Published sources
Topics: Accounting; Accounting policies; Accounting procedures; Management styles; Acquisitions; International business; Valuation; Cross functional management; Relationships; Mergers & acquisitions (M&A); Private equity; Brands; Product positioning
Share a link: https://casecent.re/p/46509
| No reviews for this item
This product has not been used yet
View our pricing guide or login to see prices.

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 values totaled $350 million. The case describes the brand valuation process, the differences between UK and US accounting methods, and motivation for the transaction.
Location:
United Kingdom, United States
Industry:
Advertising
Size:
USD3 billion revenues
Other setting(s):
1988-1989
Teaching note
-
Reference no. 5-193-167
Subject category: Finance, Accounting and Control
Authors: William J Bruns Jr (Harvard Business School)
Published by: Harvard Business Publishing
Originally published in: 1993
Version: 24 October 1997
Length: 9 pages
View full details

About

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 values totaled $350 million. The case describes the brand valuation process, the differences between UK and US accounting methods, and motivation for the transaction.

Settings

Location:
United Kingdom, United States
Industry:
Advertising
Size:
USD3 billion revenues
Other setting(s):
1988-1989

Related

Teaching note
-
Reference no. 5-193-167
Subject category: Finance, Accounting and Control
Authors: William J Bruns Jr (Harvard Business School)
Published by: Harvard Business Publishing
Originally published in: 1993
Version: 24 October 1997
Length: 9 pages
View full details