Mergers & Acquisitions The Business of Healthcare

Mergers: Pause and Question

March 4, 2013

Strength in numbers. Or is there?

Medical groups seeking alternatives to the sale of their practice to a hospital often consider merging with another group.

There’s nothing wrong with the notion of a merger. Often, there’s something right. But not always.

For example, merging two weak performing groups rarely creates a strong one. Think Sears plus Kmart.

Merging even two strong groups can be problematic, as there’s far more to a successful merger than balance sheets — focus, personnel, management style and group culture play determinative roles.

I’m not saying don’t consider a merger: If you’re looking at alternatives you have to. But seek the right merger partner — a strategic merger, one in which one plus one equals 3 or more. Bad math, but good business.

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

Mark F. Weiss

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

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