The amount of mergers and acquisitions increased by 16 percent between the second and third quarters last year, according to a June 19 report by FierceHealthFinance. “There is a natural momentum right now in … the economy as a whole for merger & acquisition, and people don’t want to be the last one picked at the kickball game,” President and CEO Russell Branzell of the College of Healthcare Information Management Executives, a non-profit organization designed to promote collaboration by health care leaders, told FierceHealthFinance in June. The increase means a large set of companies, often with the help of consultants, have identified the risks and rewards of a merger or acquisition and taken the leap. Now as the consolidations are completed, these businesses are taking the next step … moving forward as one seamless company.
The steep climb in the number of mergers and acquisitions is evident in the health care industry. Although the Affordable Care Act has created an uncertain climate on future growth and profitability for the home care industry, businesses are acting now to meet both the challenges and opportunities, according to a November 2013 report by HomeCare, “After Health Care Reform: Developing Merger and Acquisition Strategies.” The report on “mergers and acquisition options in the new era” emphasizes the vast body of state and federal laws are changing. Even though the regulatory and compliance requirements can complicate a transaction process, “Every privately held health care business ever created will, at some point, be sold, merged, bequeathed or closed,” Jonathan M. Sadock reveals in the HomeCare piece.
The merger is complete, but the strategic work continues
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