spookster

That’s just not true. Arthur Andersen originally spun off its consulting arm into “Andersen Consulting” under a global holding company. AA did accounting, AC consulting.

AC paid AA 15% of its profits every year. But AC was growing far faster than AA, so AA started growing another consulting arm, which was against the contract.

AC partners claimed contractual breach, and as part of the separation settlement had to change their name and distance themselves from the brand.

This was lucky given what happened with AA’s reputation later.

(Source: I worked there in that time period)