Bass, Berry & Sims attorney Angela Humphreys answered the question, “What piece of advice would you offer a health system executive or board member who is wrestling with the question of a strategic transaction?” for the High Stakes blog hosted by Jarrard Phillips Cate & Hancock. This post is the first in a four-part series offering insights from industry leaders on healthcare M&A trends. In response to this first question, Angela offers the following guidance:
On the buy side, it is critical to understand the synergies that can actually be achieved and management’s analysis behind post-closing projections. Statistics show that transactions take twice as long and cost twice as much to integrate as expected, and synergies realized are often less than projected. Fully vetting the integration process and the synergies that can be achieved is key to making an informed decision.
On the sell side, understanding the current competitive bidding landscape and your organization’s markets and position within those markets is key to establishing the framework for maximizing value for the organization in the negotiation process.
The blog post, “Jarrard M&A Spotlight Series Part 1: Wrestling with Transactions,” was published on the High Stakes blog on July 12, 2017, and is available online.
The other post in the series are:
- Jarrard M&A Spotlight Series Part 2: Secret Sauce for Successful Deal (July 19, 2017)
- Jarrard M&A Spotlight Series Part 3: The Deal Killers (July 27, 2017)
- Jarrard M&A Spotlight Series Part 4: Positioned for Long-Term Stability (August 3, 2017)