Essays on Vibrant Limited Is Considering Acquiring Galaxy Pharma, a Japanese Pharmaceutical Firm Case Study

Download full paperFile format: .doc, available for editing

The paper "Vibrant Limited Is Considering Acquiring Galaxy Pharma, a Japanese Pharmaceutical Firm" is an outstanding example of a finance and accounting case study.   Acquisitions in the corporate world are becoming increasingly significant; they are also receiving attention especially in the intense of globalisation. The magnitude and growth of deal values and mega acquisitions are evident. The expert advisory is consequently in high demand due to the increase in cross border acquisitions. They facilitate the undertakings and also maximise the value of acquisition transactions. Advisory companies and persons providing advice on acquisition matters are playing a significant role, they almost determine the outcomes of the acquisition deals.

There are significant potential risks and returns that surround any acquisition transaction and more so the cross border acquisitions. This report provides a discussion and recommendations of potential risks and returns in a deal where Vibrant Limited, a Canadian multinational pharmaceutical firm, is considering acquiring Galaxy Pharma, a Japanese pharmaceutical firm. Letter of Transmittal The acquisition of Galaxy Pharma provides a very good opportunity for Vibrant Limited to implement its strategy to compete in the Asian market.

Vibrant Limited will bring its vision to fruition by acquiring Galaxy Pharma; it will inject capital and expand the company considerably. It will help Galaxy Pharma to realise its vision to become a reality. Nocke & Yeaple (2007) report that there are a lot of complexities involved in acquisitions across national borders; the complexities are far more than for the acquisition of the domestic firm. As such, it is very important to collect enough data, follow the due diligence process and take more time to evaluate the company being acquired.

Galaxy Pharma is a foreign company and therefore the process of acquisition will take more time, capital outlay as well as more efforts. Therefore, it is very important for Vibrant Limited to embrace itself in this whole processes. Acquisition of Galaxy Pharma by Vibrant Limited The process of acquisition may also be determined by the level of experience of Vibrant Limited as well as its presence in the Japanese market (where the acquisition is being made). This is because there may be political, cultural and legal implications involved in addition to economic and financial implications.

Importantly, both companies are in the same industry and they are both pharmaceutical companies. They also have similar functions such as finance and accounting. These factors make acquisition determination simpler. Although the impacts of best practices and standards differ between Canada and Japan, Vibrant Limited is a multinational firm with a wealth of experience in acquisitions and international markets and therefore they will not impact negatively to the acquisition process. The impacts only add to the efforts and time required for due diligence (Nocke & Yeaple 2007).

References

Auerbach, A. J. (Ed.) 2008, Mergers and acquisitions: University of Chicago Pres

Cartwright, S., & Schoenberg, R, 2006, Thirty years of mergers and acquisitions research: Recent advances and future opportunities; British Journal of Management, 17(S1), S1-S5.

Cloodt, M., Hagedoorn, J, & Van Kranenburg, H, 2006, Mergers and acquisitions: Their effect on the innovative performance of companies in high-tech industries; Research policy, 35(5), 642-654.

Cornips, L, & Hulk, A, 2008, Factors of success and failure in the acquisition of grammatical gender in Dutch: Second Language Research, 24(3), 267-295

Gass, S, M, 2013, Second language acquisition: An introductory course, Routledge

Kohnert, K, 2008, Second language acquisition: Success factors in sequential bilingualism: The ASHA Leader, 13(2), 10-13.

Larkin, R. F., & DiTommaso, M, 2014, Mergers and Acquisitions, Not-for-Profit GAAP 2014: Interpretation and Application of GENERALLY ACCEPTED ACCOUNTING PRINCIPLES for Not-for-Profit Organizations, 397-412.

Müller-Stewens, G., Kunisch, S., & Binder, A, (Eds), 2010, Mergers & Acquisitions: Schäffer-Poeschel Verlag.

Nocke, V., & Yeaple, S, 2007, Cross-border mergers and acquisitions< i> vs. Greenfield foreign direct investment: The role of firm heterogeneity. Journal of International Economics, 72(2), 336-365.

Stahl, G, K, & Voigt, A, 2008, Do cultural differences matter in mergers and acquisitions: A tentative model and examination, Organization Science, 19(1), 160-176.

Download full paperFile format: .doc, available for editing
Contact Us