Focus on the Future

Merger: Fallen From Grace


Grace, not her real name, was very pretty. Long blonde hair. Tall. Fun.

But we used to joke that she could never develop a relationship because she didn’t like her suitors’ financial statements.

It’s not that financial considerations don’t enter into the larger issue of finding a desirable spouse. It’s that they’re only one slice of what is important.

Medical group mergers aren’t much different.

Mating two weakly performing groups rarely yields a successful future. And, a poorly performing group can be an anchor, dragging down a previously thriving practice.

But even two balance sheet appropriate candidates can be the match made in hell.

Group culture, governance styles, and what I call the jerk-to-normal ratio, among other soft factors, are often more important than tallying the ability to put cash in the bank.

As to Grace, that’s another story.

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