IMD-1-0290 © 2012
Hamilton, Stewart; Cantale, Salvatore; Eckardt, Anna
The case illustrate the funding of the Genentech acquisition by Roche. The case discover the progressive means of lending by Roche at the beginning of 2009, just months subsequent to the Lehman Brothers bankruptcy.
The case presents the issues at stake, the facts, and the incredibly bold and advanced financiang path selected by the Roche CFO. Learning objectives: The principal teaching purpose of this instance is its “anti-catastrophe” message. At among the worst possible moments of the 2008 financial disaster, an illuminated CFO (with a little team of talented individuals) determines that he cannot be changed by the external surroundings, and decides to go ahead to fund a value creating investment opportunity. The primary learnings from using this case are: 1) making class participants comprehend there are alternative methods to finance great investment opportunities; 2) that although capital structure is essential, the creating value mechanics was the job instead of lending; 3) that the funding, nevertheless, was the enabler of the value creation potential of the endeavor.
Subjects: Financing; Debt; Crisis; Capital structure; Bond offering; Leadership
Settings: Global, HQ in Switzerland ; Pharmaceutical ; 2009 Revenues CHF 49,051 million; Over 80,000 employees ; 2008
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