Thoughts on JnJ splitting up their company.

https://www.youtube.com/watch?v=9_dAnCrbNXw

Transcription

Should you split-up your company?

Hi I'm Brian Pombo, welcome back to Brian J. Pombo Live.

This news came out just recently, just Friday, that Johnson and Johnson are splitting up its company into two publicly traded companies.

One's gonna deal with the high-end health care and things like the vaccine and medical devices and those types of things that they deal with kind of on a higher-end, you know, kind of business to business business to government type solutions.

The other one's going to take care of all of the home consumables, your band aids and everything like that.

So taking two completely separate functions of the company, and creating two separate companies out of it.

Now, why would a company go about doing this?

Well, there's a whole bunch of reasons why politically, a company would do this, well, General Electric just did the same thing, that they just announced that they're going to be split into three different companies dealing with completely different things that they're one company was already doing and it's pretty smart.

If you think about all the ramifications of especially dealing with international and national governments and a whole lot of the controversy surrounding all of that, whether you're talking vaccines, or all healthcare, all this other stuff that's going on.

It makes sense to be able to separate some of your other things out from that, that have zero to do with it.

All they have is a name attached, that happens to be the same name. But when you're talking General Electric, you're talking of a very massive company, that as is really when you get that large, it's made up of many different companies and so should you look into splitting up your company?

Well, it's another option in it when you're looking at what to do with your company in the long run. And most people look at the option, okay, do I shut my company down after I die or when I retire?

Do I just shut the thing down or do I sell it?

You know, those are the two main options that most people look for. Sometimes people look for passing it on, especially ownership that you may have management worked out, but succession in terms of ownership, you may pass on to children, so forth. But in general, people look at either shutting it down or selling it.

But this blending in is actually pretty unique and it tends to happen only when you have a company large enough that you do enough multiple things. That makes sense.

Because sometimes if you do multiple things, and you really do have something that's like a separate company, or it could be a separate company could run on its own, because of a product line, maybe that you started that took off or what have you.

In a situation like that, it only makes sense that you should look into splitting it off because then you get a chance to maybe part of your company you do want to sell or you may want to sell earlier than the other parts of your company.

Or if one of the people are looking at purchasing your company, they don't want that other piece maybe baggage to you. But you can see the use of it in the marketplace.

There's a lot that goes into this and so it's really worth asking yourself whether that could possibly ever be a function?

Do you have a company that has enough different functions ...