Today, close to 70% of mergers succeed and this number is increasing, moving from a 70% failure rate in the past 20 years.
Why?
I wrote a series of articles on my website blog that answers this question from my experience of leading both hospital and physician group acquisitions and partnerships, including expanding a health system in CA region, growing from 350 to 800 provider network.
Here are some highlights from this HBR report on successful approaches when leading M&A.
🎡Diversify and take a broader approach. Pursue deals to develop a broader geography, build new capabilities and find new sources of talent.
🔍Be sophisticated and smart about due diligence. Be the authority on the business you are acquiring. Due diligence is more than financial spreadsheets. Conduct cultural assessments to understand how these groups come together and adopt the norms and values. Assess talent and capabilities to assess what is needed post merger into integration.
📌Experience and expertise matter. I created and led a mighty team of specialists and with every deal we took our learnings and leveraged those into the next deal. I created a repeatable model and M&A playbook and we became extremely proficient and agile. Every deal looks different and having an approach you can tailor and experience enables you to know what to look for in targets, conduct due diligence, negotiate and know where to focus your efforts.
🧰Apply improved tools, techniques and technology to integration. By leading a specialized team focused on M&A we could effectively determine what in integration mattered, identify trouble spots, prioritize needs and make effective and informed decisions.
#mergersandacquisitions #transformations #growthinhealthcare
Wow, congratulations to the team on a huge day!