Post-Merger Integration

  • MARK REIBOLDT

    MARK REIBOLDT

    Senior Vice President

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  • MAX REIBOLDT, CPA

    MAX REIBOLDT, CPA

    President /CEO

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Transactions among healthcare organizations are nothing new. The healthcare industry is currently undergoing an era of major consolidation as the healthcare delivery paradigm continues to evolve daily. Whether it is hospitals merging or hospitals and physicians pursuing joint ventures and other alignment structures, leaders in most organizations know that doing deals is a normal part of conducting business in the current market environment.

However, many of these leaders have learned that just getting deals done does not mean the automatic achievement of value. The real benefit from any transaction or growth strategy comes after the deal closes. At this point, the parties must come together and figure out how to get a return on their investment from the deal itself and also ensure that long-term value creation and growth occur going forward. Post-merger integration is the key to making sure that the process results in success.

Post-merger integration extends far beyond the assimilation of two organizations. Regardless of the size or scale of a transaction and the deal structure, an integration roadmap and team are essential components to achieving long-term value from an affiliation. Further, post-merger integration must begin long before a transaction is done. A deal’s due diligence process should center far less on evaluating the parties and parameters of a deal and more about what do the parties need to be considering and planning for after the agreement is complete.

These and many factors are all essential for any organization considering consolidation strategies or transactions of any size. Whether the situation involves health systems coming together or hospitals engaging in joint ventures with physicians, or any affiliation strategy, planning and preparing for integration is more critical than any of the other usual factors like valuation, definitive agreements, capital, and others that typically arise in the transaction process. At Coker, our transaction advisors have participated in many healthcare transactions of all sizes and scales throughout the U.S. for over 30 years, and we have helped these organizations make great strides towards increasing the value achieved from such strategies.

Contact us today for more information about our healthcare consulting services and learn how we can help your organization.

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