Managing mergers and acquisitions in health care: A case study in the pharmaceutical sector

ABSTRACT

This study  involves a qualitative analysis of one Indian acquisition and helps us understand the steps of the process adopted by them. The operating performance, capital adequacy, and solvency measures were compared to 3 years pre- and post-merger from the financial statements of the organizations through financial valuation of brands. Interbrand and RKS models are used to calculate the brand value. Return on investment did not indicate significant improvement after a merger and acquisition. The outcome of this research is suggestion of ‘Merger, acquisition Theory (RERC MA theory) based on rational, emotion, risk-taking ability and culture’ to understand the merger and acquisition. The present study reveals that merger and acquisition of company-a with company-b was more risky but rational.

KEYWORDS:

• Merger and acquisition
• brand equity
• brand
• Interbrand technique
• RKS model
• emotional decision

Disclosure statement

No potential conflict of interest was reported by the author.

Notes on contributor

R. K. Srivastava, Present: Prof and HOD – Marketing, Govt of Maharashtra's Sydenham Institute of Management Studies research and entrepreneurship education since July, 2012 – University of Mumbai – 150 years of standing; Past: Director General-National and Prof – Centre for Rural Development-Sterling management Institute and Ex. Director SIESCOMS, University of Mumbai (Feb2010–June, 2012). Emeritus Professor of Marketing and Head-PhD cell-SIMSR, (2004–2010) University of Mumbai – 150 years of standing. Total years of experience as Prof: 12 years. He represented ROWA as a Country Head in India. He has over 30 years of managerial experience in the Pharma industry. He has organized over ten national and international conferences. He was rated by DNA Newspaper and Star as Innovative Professor of year 2013. He was the recipient of marketing innovation award for 2014 by ABP News. He has given lectures in the US, South Africa, Denmark, Thailand, Nepal and Sri Lanka.