Splitting of a globally operating pharmaceutical company.
Initial situation
- A US pharmaceutical company is planning to divide its business into two separate and independent entities.
- Patented pharmaceutical drugs.
- Businesses with generics, medical technology, medical nutrition, and diagnostics.
- The objective of the split is to achieve an overall better stock market valuation and risk distribution.
- Two locations in Germany are affected by this.
Approach
- Plausibility check of the reasons for the planned project.
- Analysis of the provided financial forecast figures.
- Presentation of the market-related framework conditions.
- Analysis and presentation of the effects for the remaining and new business units.
- Analysis of the strategic plans and timeline.
- Workshops with the works council on the various legal and economic aspects of the project.
- Supporting the works council in developing its proposals for the reconciliation of interests.
- Processing checklists and engaging in discussions with the employer to clarify defined issues.
- Analysis of the corporate legal structures and planned contracts.
- Creation of a risk and opportunity matrix.
Result
- No staff reduction due to the split, no outsourcing to shared service companies.
- The split has largely proceeded without disadvantages for the employees.
- Achievement of an Interessenausgleich (reconciliation of interests) with significant employee-oriented components.
- Provisions for long-term security of transferred employees.
- Establishment of a strategy board involving the employer, employees, and the union in both companies.