When David Acquires Goliath
Source: Deloitte LLP
In one of the most surprising mergers of the highly competitive biotech industry, a small firm with the confidence of exceptional growth that it had seen in the recent past was able to buy out a company with a much larger operational fit than it had. Usually, combining a company with one of their suppliers would ordinarily constitute a natural move toward vertical integration. However, this life event transcended the normal risks of effective acquisitions. The global footprint and large workforce of the combined entity made this a very large deal while the target's operational complexities and market position presented unique challenges. The success of this merger largely depended on right planning and execution across multiple dimensions including strategy, people, processes, communications and technology spanning the world. To make this happen, the buyer sought help from Deloitte, a renowned outsourced business management and consulting services provider. Deloitte's team worked closely with the buyer, advising and supporting them on pre-deal due diligence and pre- and post-close integration activities for U.S. and international locations. It helped the buyer in successfully achieving integration performance that exceeded stakeholder expectations. Deloitte also assisted the buyer in identifying key areas of risk, outlining strategies for mitigation and structure communications so as to provide a clear path to the intended outcome.