Introduction
Pitching an M&A deal to shareholders is much easier for companies than organic growth, which not only increase operating costs, but also requires more time and resources to result in profitability. 2007 was the record year for M&A deals with an estimate volume of $4.2 trillion until this record was beaten last year. 2015 became the biggest year on record for M&A with an estimated $5 trillion in deals, which is more than the GDP of Australia, Mexico and India combined. Major deals were struck across a wide range of industries, most notably in technology, telecommunications and healthcare. This report discusses what is driving this aggressive growth by companies through M&A, a highlight 2015’s biggest deal and predicts what M&A
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The second important reason 2015 was a record year was the cheap debt financing and the fear that it might not last. Even though the Federal Reserve has recently increased the interest rates they are still low and unlikely to significantly increase corporate borrowing of impact M&A transactions negatively. Bankers played an active role by encouraging their clients to participate in M&A deals right away telling them it would be more expensive to do so three weeks or six month from later.
Finally, deals feed themselves, meaning that one company can be encouraged to participate in an M&A deal because their competitor has just closed a deal. This kind of competition and strive to be on top and sometimes just ego of corporate executives create a continuous flow of deals within the industry.
Biggest Deal in 2015 and Its Implications
Pfizer/Allergan merger is no ordinary deal; it’s a mega merger that would create the world’s largest drug maker. In November 2015, Pfizer announced its merger with Allergan for $160 billion making it the largest healthcare transaction ever and the second largest deal on record. The two companies will combine under the name of Pfizer PLC. Investment banks valued each Allergan share at $363.63. Stockholders of Allergan will receive 11.3 shares of Pfizer PLC for each of their hares while Pfizer stockholders 1 share for each of theirs.
This transaction allows the New York based Pfizer to move its tax address to Dublin, Ireland where
New opportunities always exist in the healthcare industry, and Pfizer can be well-positioned to take advantage of these opportunities. It recently acquired Vicuron Pharmaceuticals which gave it instant access to that company's two major antibiotics. In addition, the company's pipeline includes inhalable insulinlikely to be a popular alternative to the injectable form. The company also continues to actively support its over-the-counter mouthwashListerineclassified as a "drug" because of its antiseptic properties (McTigue Pierce, 2005).
Opportunities for Pfizer exist in two areas, first being the restructuring into a more lean and competitive organization and second is the penetration into emerging markets such as China and India who are now more able to purchase their products. With sales of approximately $50 billion per year, Pfizer has the opportunity to streamline its operations, cut costs, and add flexibility to the organization. If successful in this, they can better realize their profits and invest that money into future competitive products for the market.
A marketing plan is a comprehensive blueprint which outlines an organization 's overall marketing efforts. A marketing process can be realized by the marketing mix, which is outlined in step 4. The last step in the process is the marketing controlling.
Pfizer Inc. is a large pharmaceutical company that engages in the discovery of new technologies, the manufacture of prescription and "over the counter" (OTC) medicines, as well as the marketing of such products. It operates in three distinct segments that include Human Health, Consumer Healthcare, and Animal Health. For fiscal year 2004, the company generated approximately $53 billion in revenue that contributed to over $11 billion in net income. (Pfizer, 2004)
As part of the Course ADO13, Fashion and Textile Merchandising at RMIT University, we (Rebekah Best, Vy Costen, Daniyal Malik, Jessica Pola and Madeline Whelan) have created the following formal Marketing Plan, which was conducted on the Australian fashion retailer, Bardot. This Marketing Plan was created to assist Bardot in analysing their current situation, and to create strategies to improve their future. The base research performed for valid
This session will outline the implication of different M&A trends in North America aftermarket and its impact on the channel members.
The pharmaceutical industry is considered to be on of the fastest growing sectors in America. The IMS Institute for Healthcare Informatics reported revenues of $424.8 billion in 2015, a 12.2 percent increase from last year (pharma commerce). Furthermore, the U.S. pharmaceutical industry is considered to be a worldwide leader with sales accounting for approximately 44.5 percent of global sales (Whiteside, 2016). The driving force of these revenue figures is Big Pharma –the largest pharmaceutical companies in the United States. In fact, Pfizer, Merck & Co., and Johnson and Johnson [J&J] are three American companies ranked at the top of the global pharmaceutical market (Dezzanni, 2016).
Since the beginning of the agreement Warner Labs was aware that the partnership with Pfizer represented the risk of an hostile takeover, because of this Warner carefully designed a defensive agreement that allow the partnership, at the same time that avoiding somewhat the anticipated movement and merge proposal.
As previously stated, there is currently no other electronically programmable pill dispenser on the consumer market. Prior to patenting the XG Electronic Pill Dispenser, consumers were mandated to open their pill containers each and every time dispensary was required. This is the main avenue of personal, medical dispensary in use today.
The company operates four segments namely Pharmaceutical, Animal Health, Consumer Care, and Alliance segments (merck.com, 2012).
David Pyott is the CEO of this pharmaceutical corporation and ranked #11 on Forbe’s list of CEO’s. He joined in late 1998 and reconstructed the business’s strategy on worldwide operations. In June 2006, he was awarded the honor of Commander of the Most Excellent Order of the British Empire (CBE) by Her Majesty the Queen in acknowledgment of Pyott’s contribution to British business excellence and management skills in the United States. Pyott holds leadership in many international boards as well as serves member in many international medical-related councils and organizations. Through this, he gains a keen view of the evolving world around him and applies this to his business. So it is of no doubt why Allergan can be seen as the fastest Fortune 500 under Pyott’s leadership of just 13 years thus far. Allergan also has significant claims about its companying, stating “Allergan, Inc. is a multi-specialty health care company focused on discovering, developing and commercializing innovative pharmaceuticals, biologics and medical devices that enable people to live life to its greatest potential — to see more clearly, move more freely, express themselves more fully.” Tying back directly to this mission statement is their “insight for life” program that gives developing countries access to medicine and
One of the biggest weaknesses that will arise from the proposed service is having to contend with transportation and insurance costs. The driver would need to be paid in addition to the fact that fuel will be needed on a weekly basis and is very expensive. Taking on this venture will provide several opportunities for the fast food chain.
Pfizer Inc is a multinational investment company. It ventures in the medical and pharmaceutical industry. It is renowned as a giant pharmaceutical company, founded in 1849. It is based in the United States, New York, Manhattan at Midtown. It is the largest universal producer and trader of pharmaceuticals (Turner, 2005, pg 161). Some of the products availed to the market by the company are Lipitor, Lyrica, Diflucan, Zithromax, Zoloft, Viagra and Celebrex. These products are targeted to patients and persons in need of enhancements in their body systems and anatomy. It has an employee capacity of 12000 people in all its departmental sectors and sub-branches. The sub-branches are distributed all over and in all continents (Turner, 2005, pg 163).
The easy-money policy of the Federal Reserve and the cash-swollen balance sheets of corporations and private equity firms alike contributed to an explosion of deal-making in 2015. Long term growth in vehicle production and the positive outlook for vehicle sales over the next five years have made automotive one of the leading sectors for M&A. We expect deal activity in the automotive sector to remain strong during 2016, but to taper off from 2015 levels. The biggest factor that will suppress deal activity this year is the impending interest rate increase by the Federal Reserve. Other deal-squelching factors include geopolitical instability (e.g., in the Middle East and Russia) and the relative scarcity of companies that can be purchased at bargain prices.
Pfizer is known as one of the first and one of the world’s largest Pharmaceutical company that was establish in 1849. It was founded by two cousins called Charles Pfizer and Charles F. Erhart in New York City. Pfizer was as a manufacturer for fine chemicals but because of the discovery that was made in 1950 which made the company the path towards becoming the research-based pharmaceutical that it is update. The product that was first produced was the palatable form of sautonin which was used to treat intestinal worm. The Headquarters of Pfizer is located in New York City, with its research headquarters in Groton, Connecticut, which is nowadays the top multinational corporation that is sold all over the world. It is ranked as the second in the US and Japan market, and Novartis in first place and Roche in third place. The Pfizer Inc. is consisted with a trademark that is called PFIZER. Because of Pfizer’s strategies, Pfizer