(SOLVED) MBA 699 Milestone Three: You are a business development manager reporting to the vice president (VP) of business development at one of the largest life sciences organizations in the Midwest.

Scenario
You are a business development manager reporting to the vice president (VP) of business development at one of the largest life sciences organizations in the Midwest. The owners are ready to sell the organization and have identified a potential buyer.

You have been working with the strategic planning team to ensure that the acquisition process is as smooth as possible and all necessary documentation is in place. You have also been asked to recommend strategies to help lead the organization through the changes that will occur after the acquisition.

Last week, while planning was underway, your VP called a meeting to share that the potential buyer is showing signs of reluctance and the deal may not go through. It has been decided that you will research an alternative buyer and develop a contingency plan. This contingency plan is an important part of your strategy and your final acquisition report to the board of directors.

You and your team did preliminary research into competitors in the life sciences industry to identify alternative buyers. Based on the research, the VP has shortlisted a few alternative buyers. You have now been asked to choose and evaluate the best option from the list and create a report about this organization’s current situation.

You and your team have also been asked to formulate an acquisition road map that lays out the action steps and timelines necessary for the execution of the acquisition process.
Prompt
Alternative buyer research report: Recommend one potential buyer for the organization in the scenario from the alternative buyer options list provided and justify your choice. Visit the company’s website and research its market and financial situation.
Explain your recommendation by addressing the following selection (and rubric) criteria:

1. Current market: Describe the current market of the selected organization.
   a. What types of products does this organization manufacture?
   b. Who are its customers?
   c. In which industry does it compete?
2. Financial situation: Analyze the organization’s financial situation, including revenue, expenses, and profitability.
3. Recent developments: Visit your selected organization’s website and review its news and announcements over the past year.
   What notable recent events has the organization experienced that might make it more or less attractive to your organization as a buyer? Explain your reasoning.
4. Buyer rationale: Justify why this potential buyer is the best option for the life sciences organization. Use data from your research to support your rationale.

Acquisition road map: Develop an acquisition road map as a tool for sharing the project with the strategic planning team and the guiding coalition. Specifically, you must address the following criteria:

1. Acquisition-related tasks:

a. Describe the tasks and steps that have already been taken toward an acquisition since you were appointed to the
strategic planning team.
b. Recommend the tasks and steps that would need to happen over the next one to two years to evaluate and complete
an acquisition. For each task and step, provide estimates for how long it will take to accomplish it, the responsible
parties, and any dependencies.

2.Gantt chart: Using the provided template, create a Gantt chart that visually illustrates the tasks and steps that you’ve indicated above. Cells A1, A2, H2, B3, C3, D3, E3, F3, G3, and H3 have instructional comments embedded that will assist you in completing the template. These comments are visible when you select these cells. To use the template, replace the bracketed text and Xs with the relevant information. (Note: You can copy the chart to include it in the road map document.)

Your chart should include the following:
a. Indicate tasks and steps that have already been completed since you were appointed to the strategic planning team.
For example, be sure to include guiding coalition, industry, and competitive research aspects.
b. Indicate “in process” tasks and steps that are currently being performed.

Expert A+ Answer MBA 699 Milestone Three

Introduction

In readiness to sell our Life Science Organization in the Midwest, this paper evaluates the alternative potential buyer as a contingency plan should the original buyer bolt out.

The VP president of our organization has identified some potential buyers; as such, this report evaluates these buyers to identify one acquirer that will enable our organization to implement an exit strategy.

To achieve the objective and meet the expectations of our VP, this report will focus on one potential buyer to identify its operational capacity, strategic goals, financial clout, and industry competitiveness.

Based on the analysis done before to identify the companies in the pharmaceutical and medicine industry based on the NAICS code, this report proposes Johnson &Johnson as the potential alternative acquirer of our organization.

To reinforce the acquisition plans, this report will also formulate the road map highlighting the steps and measures to ensure a successful exit strategy for our Life Science Organization in the Midwest.

Alternative Buyer Analysis- Johnson & Johnson Company

Current Market

Johnson & Johnson is an American multinational pharmaceutical, medical device, and consumer packaged goods manufacturer headquartered in New Brunswick, New Jersey. The company has grown to become one of the largest healthcare companies in the world, with operations in over 60 countries (Johnson &Johnson(n.d) 2022).

Johnson & Johnson is well-known for its consumer healthcare products, including Band-Aid bandages, Listerine mouthwash, Neutrogena skin care products, and Tylenol pain relievers.

The company also has a strong presence in the pharmaceutical and medical device industries, producing drugs to treat diabetes, HIV, asthma, arthritis, and other medical conditions and medical devices such as contact lenses, hip implants, and heart stents.

The company has an extensive portfolio of pharmaceutical products, including treatments for cancer, diabetes, and infectious diseases. Johnson & Johnson is also a leader in developing novel therapies, such as gene and cell therapy.

Over the past few years, Johnson & Johnson has invested heavily in developing new treatments for various diseases. For instance, the company has a footprint in digital health, developing products such as connected medical devices and digital health solutions.

Johnson & Johnson serves a wide range of customers in both the consumer and healthcare industries. Consumers of Johnson & Johnson products include individuals, families, and retailers. In the consumer sector, their products are sold in supermarkets, drug stores, mass merchants, and other retail establishments.

Their customers include hospitals, healthcare professionals, managed care organizations, the government, and other healthcare providers in the healthcare sector. Johnson & Johnson also sells products to large wholesalers, distributors, and manufacturers.

Financial Analysis

Johnson & Johnson’s capacity as an alternative acquirer of our Life Science Organization in the Midwest is evidenced by its financial powers. According to the company’s income statement for the year ended 2021, it generated a total revenue of $ 93.775Billion which was a 13.55% growth from the prior year, and a total operating cost of $ 41.144 billion.

The company’s net profit margin for the same period was 22.26%, and the basic earnings per share of $ 7.93. Besides the income potential, it is also essential to consider the balance sheet position of the potential buyer to understand its solvency and liquidity positions which are the engine of the organization’s success (Johnson & Johnson Financial Statement, 2021).

The 2021 balance sheet of Johnson & Johnson company shows a total assets value of $ 182.018Billion which comprises current assets of $ 60.979 billion. The company’s current liabilities for the same period were $ 45.226 billion; thus, when divided with the current assets gives a current ratio of 1.35, implying that the company has a strong liquidity position. The solvency position of Johnson & Johnson company is also stable since its long-term liabilities of $ 62.769 are less than its equity of $ 74.023 billion.

Recent Developments

In 2021, an investment of 14.7 billion dollars was made in research and development, which reflected the organization’s commitment to generating life-enhancing technologies and creating value through collaborations that will radically impact the trajectory of health for humanity.

One of the most recent projects of Johnson& Johnson Company has been the development of Covid -19 vaccine (Patel,2022). The company partnered with the Biomedical Advanced Research & Development Authority of the USA human and health services department to develop a $ 1 billion Covid 19 vaccine.

In the financial year 2021, the company advanced its products line through submission for approval to the regulatory agencies. Some of its novel products include the Covid-19 Booster shot and the BYANNLI, a drug for the treatment of Schizophrenia in adults.

Buyer Rationale

The capacity of Johnson & Johnson Company to buy our life science organization is epitomized by several success areas of the organization. Johnson & Johnson has a solid financial position with high-income potential and a strong balance sheet.

Besides, the company is one of the most successful pharmaceutical companies globally, with a firm grip on the market, as shown by its pervasive product portfolio and operational departments (Shay,2021).

The company has many operational segments such as immunology, oncology, Neuroscience, and pulmonary hypertension, and increased research R&D makes Johnson & Johnson the most potential buyer of our Life Science Organization in the Midwest.

Acquisition Road Map

To ensure that our organization’s exit strategy is successful, the company management has committed to a systematic approach guided by several implementation approaches.

Our organization’s acquisition roadmap started with the constitution of the strategic team of the organization’s employees to spearhead the process and guide the VP.

This stage was followed by the selection of the members of the guiding coalition and preparing them to understand the objectives of the acquisition and accept and lead the change process.

More importantly, the strategic team took steps to look for, evaluate, and select the potential acquirer of our company. To avert the looming bolting out of the initial buyer, the VP provided another list of potential buyers based on the guidelines of the NAICS.

Against this backdrop, an acquisition roadmap is to be prepared to provide more insight to the VP of the organization to implement the exit strategy.

Other steps that have yet to be started and which will be part of this exit strategy include, among others, negotiation with the selected buyer, signing of the acquisition contract, training the employees to prepare them for the exit, and finally, the implementation of the exit strategy. All these activities and their proportion of completion are presented in the Gantt Chart.

Gantt Chart with an acquisition road map

Our next step in our exit strategy is to present our agency to Johnson & Johnson Company, one of the potential buyers, in the hopes that they will decide to acquire us. The board of directors will oversee doing research and developing the proposal that will be presented to Novartis.

This should take a little time as our company has already presented itself to another potential acquirer; nonetheless, the agency will need to update the firm’s financials and modify the pitch to appeal to the new desired buyer.

Based on our estimates, we can provide Johnson & Johnson Company with one to two months to evaluate our offer and provide feedback before we jumpstart the final exit strategy steps.

References

Company overview: Johnson &Johnson(n.d).Retrieved December 5, 2022, from:           https://www.google.ru/search?q=johnson%20and%20johnson

Patel, R., Kaki, M., Potluri, V. S., Kahar, P., & Khanna, D. (2022). A comprehensive review of SARS-CoV-2 vaccines: Pfizer, Moderna & Johnson & Johnson. Human Vaccines & Immunotherapeutics, 18(1), 2002083.

https://www.tandfonline.com/doi/abs/10.1080/21645515.2021.2002083

Shay, D. K. (2021). Safety monitoring of the Janssen (Johnson & Johnson) COVID-19 vaccine—United States, March–April 2021. MMWR. Morbidity and mortality weekly report, 70.

https://www.cdc.gov/mmwr/volumes/70/wr/mm7018e2.htm?s

https://www.macrotrends.net/stocks/charts/JNJ/johnson-johnson/financial-statements

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