High Technology Acquisitions
הפקולטה לניהול FACULTY OF MANAGEMENT בית הספר למוסמכים במינהל עסקים THE LEON RECANATI GRADUATE ע"ש ליאון רקנאטי SCHOOL OF BUSINESS ADMINISTRATION
High-Technology Acquisitions
Final Project -Acquisition Proposal:
To Acquire:
Lecturer: Dr. Nir Brueller Teaching Assistant: Ms. Shimrit Samuel Semester B,
April 2012
Name I.D.No. Email Niran Amir 200095362 amirnira@gmail.com Ilan Barak 052327632 ilanbarak2000@yahoo.com Uri Gruenbaum 035780113 gruenbaum.uri@gmail.com Benny Libay 026546697 bennylibay@gmail.com Barak Tzachar 043414291 barak.tzachar@gmail.com Table of Content
Executive Summary
1.1. Standalone, Synergy and Premium Valuations *Transaction multiples include premiums
Stand-alone value
Value with synergy
Walkaway
Price
$578,573
$672,772
$528,209
$725,772
$924,841
$580,704
Trading Revenue Multiple
Market Cap
DCF
Trading
EBITDA Multiple
Trans.*
Revenue
Multiple
Trans.*
Revenue
Multiple
$983,490
$1,348,363
Below are variousProtalix'svaluations (thousands, as of April 1, 2012):
Pfizer's Walkway Price is advised to be $983,490 thousand. We believe the DCF best reflects Protalix's value and suggest adding 48%-70% premium over the market price, hence, creating value ranging between $492,149 and $260,980 thousand respectively.
Part 1 - The Rational of the Acquisition 1. Pfizer's Strategy
"We aim to gain leadership positions in key growing therapeutic areas and focus on delivering patient-centric, innovative therapies. We seek strong, long-term relationships that fit our goals and offer a shared vision “ * Company Background: Pfizer is a research-based global pharmaceutical company. The company discovers, develops, manufactures and markets medicines for humans and animals, as well as consumer products. In order To maximize new opportunities in biomedical research, and bring more innovative
High-Technology Acquisitions
Final Project -Acquisition Proposal:
To Acquire:
Lecturer: Dr. Nir Brueller Teaching Assistant: Ms. Shimrit Samuel Semester B,
April 2012
Name I.D.No. Email Niran Amir 200095362 amirnira@gmail.com Ilan Barak 052327632 ilanbarak2000@yahoo.com Uri Gruenbaum 035780113 gruenbaum.uri@gmail.com Benny Libay 026546697 bennylibay@gmail.com Barak Tzachar 043414291 barak.tzachar@gmail.com Table of Content
Executive Summary
1.1. Standalone, Synergy and Premium Valuations *Transaction multiples include premiums
Stand-alone value
Value with synergy
Walkaway
Price
$578,573
$672,772
$528,209
$725,772
$924,841
$580,704
Trading Revenue Multiple
Market Cap
DCF
Trading
EBITDA Multiple
Trans.*
Revenue
Multiple
Trans.*
Revenue
Multiple
$983,490
$1,348,363
Below are variousProtalix'svaluations (thousands, as of April 1, 2012):
Pfizer's Walkway Price is advised to be $983,490 thousand. We believe the DCF best reflects Protalix's value and suggest adding 48%-70% premium over the market price, hence, creating value ranging between $492,149 and $260,980 thousand respectively.
Part 1 - The Rational of the Acquisition 1. Pfizer's Strategy
"We aim to gain leadership positions in key growing therapeutic areas and focus on delivering patient-centric, innovative therapies. We seek strong, long-term relationships that fit our goals and offer a shared vision “ * Company Background: Pfizer is a research-based global pharmaceutical company. The company discovers, develops, manufactures and markets medicines for humans and animals, as well as consumer products. In order To maximize new opportunities in biomedical research, and bring more innovative