Balancing Family and Business Needs at Merck KGaA - Teaching Note

The case sets out to describe the main turning points in Merck's more than 300-year history with an emphasis on the events since World War II (internationalization, growth through acquisitions, policy of in-licensing, R&D focus). However, the main focus is on the company's corporate and family governance structures, procedures and systems, as these represent a unique combination of legal, structural and organisational constructs that cement the influence of the descendants of the founding family in a highly effective way. The modus operandi of these bodies is illustrated in conjunction with Merck's (in the end, unsuccessful) hostile takeover bid for Schering, its German rival that took place in March 2006.