Building the New Bosco-Zeta Pharma (a)

21 Pages Posted: 9 Jun 2009

See all articles by L. J. Bourgeois

L. J. Bourgeois

University of Virginia - Darden School of Business

Paul Hammaker

University of Virginia - Darden School of Business

Nandini Bose

affiliation not provided to SSRN

Yogesh Goswami

affiliation not provided to SSRN

Sudeep Mathur

affiliation not provided to SSRN

Abstract

After Bosco Pharmaceutical's acquisition of Zeta AG, the Bosco chairman is unsure whether to merge the two firms using only internal resources or accept the help of Deloitte Consulting. Deloitte advocates an overhaul of Bosco's organizational structure to accommodate Zeta, a company one-fifth Bosco's size. The chairman is uncertain whether to adopt Zeta's worldwide product structure or whether Zeta should be required to conform to Bosco's more geographic management and operating structure. This merger would be the biggest in Bosco's 110-year history, and it is imperative to extract benefits from it—primarily by meshing the corporate cultures and achieving ambitious cost savings.

Excerpt

UVA-BP-0525

Rev. Dec. 13, 2011

BUILDING THE NEW BOSCO-ZETA PHARMA (A)

Markus Biennel was flustered. Having just announced Bosco Pharmaceutical's acquisition of Zeta AG (Zeta), the Bosco chairman was unsure about whether to follow his instinct to merge the two firms using only internal resources or whether he should accept the help of Deloitte Consulting.

John Powers, the Deloitte partner in charge of the project, advocated a complete overhaul of Bosco's organization in more than 100 countries to accommodate Zeta, which was one-fifth Bosco's size. But Biennel thought that because Zeta had so few complementarities with Bosco—primarily in the oncology (cancer) sector—he was not sure whether Bosco should adopt Zeta's worldwide product structure or whether Zeta should be required to conform to Bosco's more geographic structure.

Bosco was a latecomer to the consolidation activity in the global pharmaceutical industry, and, by relying solely on in-house R&D to generate new products, the company had also missed the window of opportunity for “in-licensing” new drugs from biotechnology start-ups. Biennel thought that the Zeta acquisition would provide a way to catch up.

. . .

Keywords: Postmerger integration, corporate strategy, M&A

Suggested Citation

Bourgeois, L. Jay and Hammaker, Paul and Bose, Nandini and Goswami, Yogesh and Mathur, Sudeep, Building the New Bosco-Zeta Pharma (a). Darden Case No. UVA-BP-0525, Available at SSRN: https://ssrn.com/abstract=1416555

L. Jay Bourgeois (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924 -4833 (Phone)

HOME PAGE: http://www.darden.virginia.edu/faculty/bourgeois.htm

Paul Hammaker

University of Virginia - Darden School of Business

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

Nandini Bose

affiliation not provided to SSRN

No Address Available

Yogesh Goswami

affiliation not provided to SSRN

No Address Available

Sudeep Mathur

affiliation not provided to SSRN

No Address Available

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