No matter what industry a company is in, major businesses in Louisiana and elsewhere have to make major decisions on a daily, weekly, quarterly or yearly basis. While these decisions or business deals might be minimal to the overall function of the company, others can alter the dynamics of the company. One such business deal is a merger and acquisition.
While an M&A can be beneficial within the healthcare industry, it is also a business transaction that could disrupt the normal functions of medical facilities. Therefore, it is suggested that healthcare organizations take on certain business strategies to ease the process.
Common acquisition mistakes, such as undefined growth strategies and deal overpayments, are often reported. Thus, it is essential to take steps to properly organize these and other details during an M&A. According to researchers, healthcare organizations are more likely to make mistakes during high-volume mergers and acquisitions. Therefore, avoiding a reactive approach can help ensure that these deals add value versus problems to their organization.
It is helpful to develop a growth strategy that will clearly address the role that the merger and acquisitions will play in the organization’s overall growth plan. This could help avoid any bumps along the road as well.
An M&A is often a major step and should never be taken lightly. That being said, many businesses often need the aid and guidance of legal professionals. This will not only help with the process but will help business owners ensure the best interests of the company are protected.
Source: Revcycleintelligence.com, “How to Improve Healthcare Mergers and Acquisitions Strategies,” Jacqueline Belliveau, Nov. 9, 2016