Kevin L Fletcher’s Post

There’s nothing new in healthcare mergers and acquisitions. It’s a major way that corporations in the industry have grown in size and profits. But Collier’s National Director, Healthcare for the USA Shawn Janus recently wrote that there are three factors driving M&A to a higher degree. They are market dynamics and challenges; the “consumerization” of healthcare; and digital solutions and emerging technologies. According to Janus, while M&A activity has declined in other industries, healthcare M&A reached $341 billion, which was a 22% increase. But executives worry about economic conditions making it difficult raised capital. Also, a study showed that 68% of people in the industry don’t think that initial public offerings will drive transactions. For smaller companies, investors, particularly venture capital, want an eventual exit strategy. IPOs are preferred for the amount of cash they can generate for returns. But if conditions don’t favor going public, then acquisitions are a fallback option. Consumerization is in general the use of consumer-oriented technologies and focus on products and services. “This shift is not only evident in the healthcare sector but is also influencing the retail, technology, and consumer packaged goods spaces, where health-related products and services are emerging to cater to individual consumer health needs,” Janus wrote. #healthcarerealestate #medicalrealestate #commercialrealestate #floridarealestate #medicaloffice #medicalbuilding #CRE

Today, close to 70% of mergers succeed and this number is increasing, moving from a 70% failure rate in the past 20 years. Why? I wrote a series of articles on my website blog that answers this question from my experience of leading both hospital and physician group acquisitions and partnerships, including expanding a health system in CA region, growing from 350 to 800 provider network. Here are some highlights from this HBR report on successful approaches when leading M&A. 🎡Diversify and take a broader approach. Pursue deals to develop a broader geography, build new capabilities and find new sources of talent. 🔍Be sophisticated and smart about due diligence. Be the authority on the business you are acquiring. Due diligence is more than financial spreadsheets. Conduct cultural assessments to understand how these groups come together and adopt the norms and values. Assess talent and capabilities to assess what is needed post merger into integration. 📌Experience and expertise matter.  I created and led a mighty team of specialists and with every deal we took our learnings and leveraged those into the next deal. I created a repeatable model and M&A playbook and we became extremely proficient and agile.  Every deal looks different and having an approach you can tailor and experience enables you to know what to look for in targets, conduct due diligence, negotiate and know where to focus your efforts. 🧰Apply improved tools, techniques and technology to integration. By leading a specialized team focused on M&A we could effectively determine what in integration mattered, identify trouble spots, prioritize needs and make effective and informed decisions.  #mergersandacquisitions #transformations #growthinhealthcare

Today, close to 70% of mergers succeed and this number is increasing, moving from a 70% failure rate in the past 20 years. Why? I wrote a series of articles on my website blog that answers this question from my experience of leading both hospital and physician group acquisitions and partnerships, including expanding a health system in CA region, growing from 350 to 800 provider network. Here are some highlights from this HBR report on successful approaches when leading M&A. 🎡Diversify and take a broader approach. Pursue deals to develop a broader geography, build new capabilities and find new sources of talent. 🔍Be sophisticated and smart about due diligence. Be the authority on the business you are acquiring. Due diligence is more than financial spreadsheets. Conduct cultural assessments to understand how these groups come together and adopt the norms and values. Assess talent and capabilities to assess what is needed post merger into integration. 📌Experience and expertise matter. I created and led a mighty team of specialists and with every deal we took our learnings and leveraged those into the next deal. I created a repeatable model and M&A playbook and we became extremely proficient and agile. Every deal looks different and having an approach you can tailor and experience enables you to know what to look for in targets, conduct due diligence, negotiate and know where to focus your efforts. 🧰Apply improved tools, techniques and technology to integration. By leading a specialized team focused on M&A we could effectively determine what in integration mattered, identify trouble spots, prioritize needs and make effective and informed decisions. hashtag #mergersandacquisitions #transformations #growthinhealthcare https://lnkd.in/eTB4pmit

Could big MedTech deals be back? That's what McKinsey analysts are currently arguing - saying that mergers between large corporations only make sense now with increased pressure to improve bottom lines and increase innovation. The industry, which has underperformed in recent years following the pandemic, needs such mergers to continue its forward momentum, but some are still wary of jumping in feet first. For more: https://bit.ly/3t0vUDD #MedTech #MedicalDevices #MedicalTechnology #McKinsey

Deals, mergers, partnerships, and acquisitions are key mechanisms as health organizations look to enter new markets, differentiate their value proposition, and achieve growth strategies. In this week’s episode, Jen Burke and Mindy McGrath are joined by Vynamic’s Deal Activation & Partnership Enablement Service Leads, Sean Martin and Kevin L Fletcher, to better understand what’s driving these deals and what healthy industry leaders should be thinking about to maximize their value. Tap the link to listen now and subscribe. https://lnkd.in/e2a7caTX

Repeated analyses show more than half of #acquisitions fail – it's not just target selection, it's also making the wrong choices in how to integrate. You can make better choices - and get better results - with modest preparation.   First, decide how to execute post-signing: full, partial or minimal integration. New polling shows the most experienced acquirers avoid that last – seeing it adds complexity rather than simplifying the path to value.   I discussed this topic in September with Nancy Halter, MBA, PMP (Zimmer Biomet), Stephanie Hon (Visa), and Steve Walker (Eli Lilly and Company) at the Transaction Advisors M&A Conference at Cornell University Tech. Key is picking the right #postmergerintegration strategy for the specific deal. Especially in innovative industries, minimal integrations can offer many advantages. They may even attract more deals with small innovators.   Having led complex global M&A integrations and carve-outs for over 15 years, I believe there is a path – and buyers should expand their toolbox. If interested how, just reach out.

Congratulations are in order for our friends at Athelas, a forerunner in enterprise healthcare software, who have completed their $6B merger with Commure. Under the leadership of Justin Niederklein, CPA, Percipio Business Advisors worked alongside Athelas’ executive team, finance and accounting departments, and attorneys, to manage the due diligence process, provide insight on deal structure and negotiation, and to coordinate closing activities. Read more about the partnership of Percipio Business Advisors with Athelas as it sets the stage for a game-changing approach in American healthcare:

A new era of oversight is coming for healthcare mergers & acquisitions in California! Make sure you are up to date on compliance with this blog from #TeamSPB

Exploring the dynamics of deals, mergers, partnerships, and acquisitions is crucial for health industry organizations aiming to penetrate new markets, enhance their value proposition, and realize their growth objectives. It was great to have Vynamic's Deal Activation and Partnership Enablement Heads, Sean Martin and Kevin L Fletcher join the Trending Health podcast to discuss the motivations behind these transactions and what leaders in the health sector need to consider to optimize the benefits of a deal.