Mergers and Acquisitions
Acquisition Plan
Prepared by:
Ela Haxhiraj
Alba Sulce
Lorina Allushi
Mimoza Ballgjini
The plan objective
The company we chose to represent as the acquiring company is Eli Lilly and Company.
This company has a long history in the market, and nowdays is one of the 100th largest pharmaceutical company in the world. Across the globe, Lilly discovers, develops, manufactures, and sells pharmaceutical products. It has a wide range of products which are sold in more than 125 countries.
One of the reasons this company is very successful even in such a competitive industry, is that they are very competent in managing strategic mergers and acquisitions. By collaborating with other pharmaceutical firms, Lilly continues to maintain its leader position in researching and developing medicine. Their major strategy is the development of new products. Therefore, even why they are most known for the development of anti-cancer vaccines, they want to expand and acquire other smaller pharmaceutical compan ies. This would increase the range of their products, and by acquiring firms outside the States, they would increase they would have wider access to other markets as well.
The key financials for this company are very good. Both assets and equity has been growing with the years. Nevertheless, from 2011 to 2012 we have a decrease in the rate of return. The graph looks like this:
In order to go back to an increase in the Return on Assets and Return on In vestment, we thought Lilly should make an acquisition in Bulgaria. We estimated the Biovet Ad pharmaceutical company as the most potential target.
We thought this would be a good target for Lilly based on the declaration that its CEO had after acquiring Imclone, which is also a relatively smaller company compared with Lilly.
What John Lechleiter (the CEO) said was “We could imagine going for further smaller buys ... in related market areas such as biotechnology, diagnostics, animal health or
Prepared by:
Ela Haxhiraj
Alba Sulce
Lorina Allushi
Mimoza Ballgjini
The plan objective
The company we chose to represent as the acquiring company is Eli Lilly and Company.
This company has a long history in the market, and nowdays is one of the 100th largest pharmaceutical company in the world. Across the globe, Lilly discovers, develops, manufactures, and sells pharmaceutical products. It has a wide range of products which are sold in more than 125 countries.
One of the reasons this company is very successful even in such a competitive industry, is that they are very competent in managing strategic mergers and acquisitions. By collaborating with other pharmaceutical firms, Lilly continues to maintain its leader position in researching and developing medicine. Their major strategy is the development of new products. Therefore, even why they are most known for the development of anti-cancer vaccines, they want to expand and acquire other smaller pharmaceutical compan ies. This would increase the range of their products, and by acquiring firms outside the States, they would increase they would have wider access to other markets as well.
The key financials for this company are very good. Both assets and equity has been growing with the years. Nevertheless, from 2011 to 2012 we have a decrease in the rate of return. The graph looks like this:
In order to go back to an increase in the Return on Assets and Return on In vestment, we thought Lilly should make an acquisition in Bulgaria. We estimated the Biovet Ad pharmaceutical company as the most potential target.
We thought this would be a good target for Lilly based on the declaration that its CEO had after acquiring Imclone, which is also a relatively smaller company compared with Lilly.
What John Lechleiter (the CEO) said was “We could imagine going for further smaller buys ... in related market areas such as biotechnology, diagnostics, animal health or
References: http://www.cuttingedgepr.com/articles/changecomm_good_comm.asp http://www.type2consulting.com/marketingfinance/creating-value/brandingmergers/ http://www.accountingtools.com/acquisition-analysi http://ycharts.com/companies/LLY/return_on_assets http://www.lilly.com/careers/why-lilly/Pages/awards-recognition.aspx