Diversification by product, end market, customer, and geography; Strong brand names with leadership positions in most product lines; Extensive distribution network; Very competitive cost base; and Low capital intensiveness, enabling consistent free cash flow generation. Somewhat cyclical end markets; Acquisition growth strategy, which creates integration risks; and R&D requirements to match the growing technological sophistication of products. The ratings on Washington, D.C.-based Danaher Corp. reflect the company's excellent business risk profile, modest financial risk profile, and ample liquidity, offset to some extent by its somewhat aggressive business objectives and moderately conservative financial policies. Danaher is a diversified industrial manufacturer primarily operating in three business segments--professional instrumentations (environmental, medical technologies, and electronic test operations), industrial technologies (mainly motion and product identification
