Faculty of Economics and Business Administration Publications Database

Mergers and acquisitions of German biotechnology startups

Patzelt, Harald
zu Knyphausen-Aufseß, Dodo
Volume: 9
Number: 1
Pages: 1 - 19
Month: January
Link External Source: Online Version
Year: 2007
Keywords: Mergers; Acquisitions; Biotech start-ups; Entrepreneurship; Biotechnology; Case study; Venture capital; Financing; Post-merger integration; Germany; Small firms
Abstract: In research-intensive high-technology industries, it is often impossible for startup managers to build up internally all resources necessary for a successful company development. Hence, startups enter into strategic alliances with other companies or into mergers and acquisitions (M&As). Whereas alliances of startups are well studied in the literature, work on M&As mostly focuses on large corporations, but neglects deals between small entrepreneurial firms. In this exploratory study, we analyse six M&A cases of German biotechnology startups. We illustrate specific motives, benefits and problems associated with these deals. Our findings have implications for start-up managers and the future development of the German biotech industry.