There is something important to note about the deal on everyone’s lips at the time of writing (Pfizer/AstraZeneca). It is that journalists and politicians are repeating the ‘urban myth’ that `big pharma’ deals destroy value.
This myth is proving difficult to dispel.
Research conducted by Scott Moeller and myself for Intelligent M&A: Navigating the Mergers and Acquisitions Minefield, has been confirmed by many others. Our findings have been published since 2005 (and confirmed again by a recent McKinsey study). Our findings show that companies that conduct mergers and acquisition (M & A) deals outperform their peers who do not do such deals.
It is best to remember that the mantra that ‘all deals (or even most deals) fail’ should be consigned to the dustbin of history, the successful ones don’t happen automatically but it takes a lot of effort to create and implement success.
Want to learn more on how to achieve success in mergers and acquisitions?
Mergers and Acquisitions book chapter
This free Mergers and Acquisitions book chapter gives you an insight into some of the main themes which are needed to develop an intelligent merger and acquisition strategy.
Want to learn more? The full details are in the book –
Moeller, S., & Brady, C. (2014). Intelligent M&A: navigating the mergers and acquisitions minefield. 2nd Edition, John Wiley & Sons.
What do you think?
Was the Pfizer/ AstraZeneca deal a failure to create more value, or was it a great success in terms of protecting the UK economy? Please use the comments section below.