Re:Build Manufacturing—Reimagining the Conglomerate
16 Pages Posted: 13 Jan 2023
Abstract
In October 2021, Miles Arnone, CEO of Re:Build Manufacturing (Re:Build), was thinking about Re:Build's next acquisition. Arnone contemplated the pros and cons of each of three candidate companies as he prepared for a discussion with his colleagues. His associate had synthesized the results of a screening assessment for the three potential acquisitions, one element of Re:Build's acquisition decision-making process. Arnone and others had launched Re:Build in 2020 to help rejuvenate the US industrial base. The vision entailed acquiring and scaling manufacturing and engineering businesses into a tightly integrated portfolio to leverage technical capabilities across the enterprise. Adding a company to the Re:Build stable was no small decision, and getting it right would be another step forward in creating a “new” type of conglomerate—one where each company worked together to share technology, knowledge, and ideas. Which company (if any) offered the best fit with the overarching strategy? This partially disguised field-based case includes discussion of Re:Build's company structure, decision-making process, and acquisition criteria, as well as data about its current companies and the three under consideration for acquisition. This case is taught in “Operations Strategy,” a Darden School of Business elective MBA course. It could also be used in other MBA courses and Executive Education programs that address entrepreneurship, private equity, and general strategy.
Excerpt
Rev. Dec. 19, 2022
Re:Build Manufacturing—Reimagining the Conglomerate
In October 2021, Miles Arnone, CEO of Re:Build Manufacturing (Re:Build), was at the Warrior Ice Arena, the practice facility of the National Hockey League's Boston Bruins, and the home ice of the Boston Pride women's professional ice hockey team. Arnone, who with partners had bought the National Women's Hockey League team in 2019, was sitting in one of the bright yellow seats as the Zamboni resurfaced the ice before a practice session. He faced the rink, on the far side of which gigantic windows opened to a view of the Massachusetts Turnpike with cars and trucks whizzing by. Arnone's thoughts were elsewhere. Re:Build's leadership was considering acquiring one of three platform companies. He contemplated the pros and cons of each candidate company and anticipated discussing with his colleagues the results of a screening exercise, just one element of Re:Build's acquisition decision-making process.
Founding Hypothesis and Thesis
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Keywords: Re:Build, manufacturing, engineering, conglomerate, acquisition, M&A, enabling technology companies, ETC, platform company, Lean, continuous improvement, United States, private equity
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