ABSTRACT
Wayne Huizenga left Waste Management in 1984 to apply the same acquisition-oriented growth strategy to the video rental industry. Waste Management’s growth accelerated after Huizenga’s departure. Revenues increased from $1.3 billion in 1984 to nearly $10 billion in 1993. The company’s split-adjusted stock price increased from $3.41 in 1984 to a peak of $46.63 in 1992. Waste Management International plc. accounted for half of WMX’s operating revenues through its traditional solid waste collection and disposal operations. Waste Management’s growth during the 1970s was marred by allegations of price fixing and illegal trade practices. Waste Management’s aggressive accounting practices were a poorly kept secret. Abraham J. Briloff wrote an article for Barron’s in 1990 challenging the company’s purchase accounting. Waste Management’s $3.5 billion adjustment in February 1998 prompted an Securities and Exchange Commission investigation of the company’s accounting and Arthur Andersen’s audits. Waste Management contributed an additional $145 million to the investors’ compensation fund.
