Title: Mergers and acquisitions of German biotechnology startups

Authors: Holger Patzelt, Lars Schweizer, Dodo Zu Knyphausen-Aufsesse

Addresses: EXIST-HighTEPP, Otto-Friedrich-University of Bamberg, Jaeckstr. 3, D-96052 Bamberg, Germany. ' Otto-Friedrich-University of Bamberg, Human Resources and Organisation, Feldkirchenstr. 21, D-96045 Bamberg, Germany. ' Otto-Friedrich-University of Bamberg, Human Resources and Organisation, Feldkirchenstr. 21, D-96045 Bamberg, Germany

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.

Keywords: M&A; mergers; acquisitions; biotech start-ups; entrepreneurship; biotechnology; case study; venture capital; financing; post-merger integration; Germany; small firms.

DOI: 10.1504/IJBT.2007.012166

International Journal of Biotechnology, 2007 Vol.9 No.1, pp.1 - 19

Published online: 26 Jan 2007 *

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