Post-merger success and the ability to achieve a timely return-on-investment are often significantly impacted by post-merger integration with the acquired practice.The most successful companies in this regard will have outlined a post-merger integration strategy with planning beginning early in the acquisition process. Such early planning ensures, among other things, that compliance due diligence is addressed in addition to financial and regulatory due diligence. Surprisingly, many companies acquire practices with little forethought to post-merger integration, resulting in an often chaotic post-close environment and potentially at-risk processes that remain unknown and/or unaddressed by the acquiring company.
The first step in a winning strategy is an affirmative decision regarding how and when post-merger integration will occur. Will the acquired target be permitted to operate independently or “as it always has” for a period? What is the anticipated timeframe? Why? Will a strategy be set for the timely integration of vital corporate functions? The Board, who is often deeply engaged in the pre-acquisition process, should extend its oversight to the post-merger integration function.
Again, planning for post-merger integration is critical and will impact your actions in the diligence phase. With a post-merger integration strategy in place, for example, a meaningful review of existing agreements can occur and consider whether accepting the assignment of an agreement fits within your integration plan (EMR, Financial systems, etc.). Additionally, a compliance diligence review component in the early acquisition phase allows for a timely update to the company’s compliance risk assessment and an update to the annual work plan to ensure identified compliance issues are addressed, audited, and monitored.
Contact us today for more information about our services and for assistance in establishing a post-integration strategy.