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

www.weisspc.com

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