High-Technology Acquisitions
Final Project -Acquisition Proposal:

To Acquire:

May 2012

Table of Content
Executive Summary I A. Purpose I B. Background I C. The Rational for the Acquisition I D. Standalone, Synergy and Premium Valuations II E. Integration Plan II
Part 1 - The Rational of the Acquisition 1 1. Pfizer's Strategy 1
1.1. Pfizer Growth Strategy 2 2. Pfizer's Road Map 4
2.1. Pfizer's Acquisitions Rational 4 3. The strategy behind the acquisition 5
3.1. Acquisition Motives 5
3.2. M&A vs. Alliance 5 4. Target Identification 7
4.1. Protalix - an R&D Acquisition 9 5. Synergy Analysis 10 6. Standalone, Synergy and Premium Valuations 12
6.1. Market Value 12
6.2. Trading and Transaction Multiples Valuations 12
6.3. Discounted Cash Flow (DCF) Valuation 14 6.3.1. DCF Methodology and Assumptions 14 6.3.2. Summary of the Standalone and the Synergy DCF Valuation 15
6.4. Premium 16
6.5. Walk-away Price, Net Value Creation and Financial Feasibility 17
Part 2 - The Integration Plan 18
Bibliography 21
APPENDIXES 22 Appendix 1 - Pfizer's Executive Leadership Team 23 Appendix 2 - Pfizer's Organizational Structure Scheme 24 Appendix 3 - Five Forces Analysis for the Pharmaceutical Industry 25 Appendix 4 - Pfizer's PEST Analysis 27 Appendix 5 - Level of Competition Between the Acquirers & the Uniqueness of the Acquired Company 31 Appendix 6 - Acquisition Motives 33 Appendix 7 - Protalix Management and Board of Directors 35 Appendix 8 - Technology Adoption Lifecycle 36 Appendix 9 - Pfizer's SWOT Analysis 36 Appendix 10 - Protalix's Financials 38 Appendix 11 - About the Valuation Methods 40 Appendix 12 - List of Companies and Their Multiples 41 Appendix 13 - Complete Results of Multiples Valuations 42 Appendix 14 - DCF Data and Assumptions 43 Appendix