In isolation, Danaher’s (DHR)
investor day focusing on the Pall operations doesn’t really change
anything about the story. What I believe is more important, though, is
what the presentation reveals about the company’s much-lauded Danaher
Business System (or DBS) and its ability to drive value from M&A.
With
Danaher successfully integrating and improving companies across the
range of revenue growth and R&D intensity, I believe Danaher has a
compelling case for how and why it can continue to buy companies
(particularly in life sciences and diagnostics) at seemingly high
valuations and still generate value from the process and capital
invested.
Danaher’s life science opportunities are
significant, and I see no reason to believe that the company is looking
at any significant near-term issues in the water or product ID
businesses. Management was actually more optimistic than I expected on
conditions in the semiconductor sector, and the company is leveraging
its pricing power and supply chain flexibility to minimize the
disturbances from tariffs.
Read more here:
Danaher's Pall Investor Meeting Underscores Several Business Strengths
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