“Throughout the pandemic, biopharma M&A has cont
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Posted On: 01/30/2022 3:58:12 PM
“Throughout the pandemic, biopharma M&A has continued at a brisk pace, with large companies focusing on small and midsize deals to help drive growth and innovation. These are deceptively complex transactions, with as few as six weeks between announcement and close, and there is a lot at stake. Acquirers are often paying a significant premium based on the target’s portfolio, technology, and talent, as well as on the potential financial benefits of combining the two companies.
One would therefore expect acquirers to work quickly after the deal is announced to define the integration strategy and the operating model for the combined company in order to identify the talent they want to retain, ensure business continuity, and preserve value. But in our work with more than 20 recent biopharma integrations, we saw acquiring companies often fall victim to several damaging myths about these transactions that delayed action and destroyed value. Acquirers need to dispel these myths and adopt an integration approach that focuses on value drivers first and cost synergies later, that quickly defines the combined operating model, that prioritizes talent retention, that is cross-functional and centrally governed, and that ensures readiness on Day One while maintaining a focus on value.”
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One would therefore expect acquirers to work quickly after the deal is announced to define the integration strategy and the operating model for the combined company in order to identify the talent they want to retain, ensure business continuity, and preserve value. But in our work with more than 20 recent biopharma integrations, we saw acquiring companies often fall victim to several damaging myths about these transactions that delayed action and destroyed value. Acquirers need to dispel these myths and adopt an integration approach that focuses on value drivers first and cost synergies later, that quickly defines the combined operating model, that prioritizes talent retention, that is cross-functional and centrally governed, and that ensures readiness on Day One while maintaining a focus on value.”
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