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.
Comment or contact me if you’d like to discuss this post.
Mark F. Weiss