Functional Practices currently are
In the following we describe our focus within these Practices
Corporate Finance/M&A
Increased activity in mergers and acquisitions and renewed capital markets appetite for certain initial public offerings (IPOs) provide companies with an opportunity to revisit their business portfolios and look for ways to increase the value of their businesses.
Mergers and acquisitions are important strategic tools. It is true that more than half of all corporate transactions have destroyed value. However, an interesting acquisition opportunity may allow a company to, in the short-term, engage in a new business or area of interest, reach critical mass, build a presence in a new geographical market, acquire new capabilities, exploit economies of scale and synergies or diversify its business or product portfolio.
We work with Clients in assessing the strategic fit of acquisition opportunities, conduct due diligence on the target, assess the true value of potential L&A (projects, products) and M&A (target companies) opportunities, and support the post-M&A processes. We are unique in bridging the gap between strategy consultants and transaction advisors, working with Clients through the deal process, negotiation tactics and pricing. Due to our global network in the healthcare industry and existing relationships with investment banks, we are aware of a range of licensing and M&A opportunities.
Example Case:
Our consultants advised a U.S. pharmaceutical client in the potential takeover of a Western pharmaceutical company. The mandate included transaction process management and financial advisory.
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Finance/Accounting
In today’s markets, projects, reorganizations and other business changes are initiated at an unprecedented rate. Finance and Accounting systems in well-managed organizations are able to effectively provide the relevant accounting data for identifying issues in the diagnostic phase of a project, for planning the financial effects of recommendations and for following up on the actual effects of implemented measures. Due to high profitability and lack of margin pressure in many Healthcare sectors, Finance and Accounting issues have played a comparably unimportant role in many Healthcare companies. As a result, determining key figures like the true profitability of individual offerings proves difficult and quantifying the impact of events is delayed, thus making immediate action when required impossible.
We help companies to increase the power of their accounting systems and the quality of support provided from Finance and Accounting to decision makers, within the possibilities of existing IT systems or in combination with an IT project.
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Marketing and Sales
Companies today are reaching the limits of effective cost restructuring, yet remain under pressure to grow earnings. Marketing contributes a number of levers to achieve growth, but the varying degrees of effectiveness of available levers require careful monitoring and analysis. Today’s key marketing challenge is to integrate marketing into business strategy, functions, and processes.
We help Clients to identify insights about customers and to raise awareness inside the organization of customer needs. The goal is to ”own” most of a company’s customer touchpoints and data in order to increase customer retention, target sales and marketing efforts to clearly defined and understood customer segments and to increase the effectiveness of marketing spend. In many situations, there is unrealized opportunity to fully exploit key (blockbuster) products and the value of existing brands. Together with Client executives, we review product and service portfolios with the goal of identifying potential for employing marketing levers and to increase the portfolio’s and the company’s value. We also assess pricing and identify potential for differentiated price structures.
Example Case:
We have in-house pricing expertise from helping an international medical devices concern to develop a new pricing strategy. The new pricing policy incentivizes customers (hospitals and independent practitioners) to increase their revenues with our Client.
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Operations
During the growth era of the late nineties, many companies gave little attention to operational excellence. Today, achieving operational excellence is their top priority. Customers are becoming more sophisticated: They know a vendor’s performance before signing a contract and before buying. Globalization and the availability of low cost providers in emerging regions allow companies to reduce cost by outsourcing or offshoring entire value chains. This is news to companies in most Healthcare sectors.
We help Clients identify operational improvements by developing operations strategies, redesigning business and processes, identifying and realizing purchasing potential and by helping clients to understand the theoretical limits of cost reduction efforts.
Example Case:
Our consultants helped improve efficiency and reduce cost in a specialty chemical plant that included API (active pharmaceutical ingredients) production. Total influenceable costs were reduced by 40% (12% of total cost)
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Organization and Organizational Capabilities
Questions of organizational structure and executive capabilities make it on the top management agenda whenever governance issues surface, post-M&A integration requires a redesign of the organisation or new management incentive systems need to be designed. But highly performing organizations always differ from their competition by “soft” factors like high motivation, superior talent and the ability to change rapidly when the environment requires the organization to do so.
We have a wide range of diagnostic and interventional approaches to help firms achieve new levels of performance, from strengthening managerial and executive talent to creating incentives to enhance enthusiasm and alignment. We offer a range of interventions to help organizations accelerate and deepen transformation. These range from novel institutional arrangements to methods for increasing the change-readiness of individuals, groups, and entire firms.
Example Case:
After the acquisition of a mixed pharma/agro conglomerate by a U.S. pharmaceutical concern, our consultants helped integrate the various therapeutic areas and R&D units distributed over three countries. The mandate included support in developing therapeutic area strategies and organizations
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Strategy
There is no way to reliably predict future business dynamics from experiences of the past. For Abolon, strategy is a portfolio of activities coordinated over time to drive long-term performance. This requires planning of what core activities to focus on and when to enter or exit a business. In order to drive shareholder value in the long-term, companies need to create a portfolio of initiatives around a unifying theme, reinforced by brands, value proposition to customers, and solid operational skills. It also requires risk management and corporate development to play a more important role than it currently does in many organizations.
Many different perspectives of strategic thinking are necessary to ensure success. We offer a comprehensive toolkit of approaches to develop business, corporate or growth strategies with Clients that may have specific needs around growth, globalization, competitive issues in the marketplace, and a number of other strategic and tactical concerns that may arise.
Example Case:
Our consultants helped a Client in the medical devices sector develop a strategy for its largest business unit. As an important part in the diagnostic phase, we globally screened the Client’s product portfolio together with Client executives. This has led to a consolidation of the current product portfolio releasing financial resources for developing completely new products with significant potential in the future and product modifications required for entering new geographies.
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