Mitigating risk to avoid value destruction
As the rapid pace of deal making continues unabated, pharmaceutical and biotechnology executives must carefully balance the speed at which they conduct transactions with the need to thoroughly investigate potential risks.
Though companies seek to create value through acquisitions and alliances, they may risk value destruction when they rush to seal-the-deal. Jeffrey Greene from Ernst & Young suggests that executives who take a holistic approach to managing risk throughout the transaction life cycle are better able to achieve deal success.
An enterprise risk assessment perspective takes into account the potential benefits and risks in the clinical, financial, managerial, and compliance functions. To help set executives off on the right foot, Greene provides an overview of several buy- and sell-side risks that pharmaceutical and biotechnology executives can control for, starting with transaction strategy through to postclosing optimization.
Download the full article, "On the safe side of deals" (pdf, 137kb).