Final Individual Assignment Case: Kendle International
Answer the following questions. You should limit your paper to five (5) pages.
- How does the CRO business work? Why is the sector growing at the time of the case? How is Kendle doing financially compared to other companies in the sector?
- Can Kendle survive as a privately owned domestic company or does it need to become a much bigger firm with operations outside the US?
- Should Candace Kendle and Christopher Bergen consider selling their firm to another company in early 1997? How does the potential sales price of the firm compare to its underlying economic (discounted cash flow) value as a stand-alone firm? Identify any major assumptions you make in your analysis,
- Do the acquisitions of U-Gene and gmi make sense? Are the proposed deals valued fairly?
- Assuming a growth strategy is adopted, which one of the following three strategies would you recommend? 1) Proceed with both acquisitions now; 2) do one acquisition followed by an initial public offering (IPO) and the second acquisition later; 3) do an IPO first, then start to acquire.