BCG Medium M&A

Orwells that Ends Well

ProHub Comment

This M&A case requires candidates to evaluate three acquisition targets across multiple dimensions (strategic fit, economics, and risk). The case tests quantitative analysis skills through financial modeling of synergies and overlap impacts, combined with qualitative assessment of integration complexity and market opportunity.

Estimated Time 15 minutes
Difficulty Medium
Source Duke
50 / 100

Your client is Animal Pharma, a public pharmaceutical supplier focused on oral solid medications (e.g., tablets, capsules).

Animal Pharma’s portfolio has been impacted by decreasing margins.

Animal Pharma is considering the acquisition of a rival supplier to boost profitability.

Animal Pharma’s CEO has hired you to review the attractiveness of this strategy.

Clarifying Information

  1. Objective: The executive board would like for the company’s stock to increase ASAP and is looking for a quick and sustained boost.
  2. Model: Animal Pharma does not currently manufacture any of their products and are reliant on upstream partners for molecule synthesis.
  3. Geography: Animal Pharma is focused solely on domestic sales with no current international exposure.
  4. Positioning: Animal Pharma’s stock has been performing below the S&P 500 but similarly to comparable pharmaceutical companies.