Many factors go into making a successful consolidation, and it’s important to remember that each deal is unique. Here are five tips that will help make sure that the deal goes smoothly.
Make sure the consolidation is fair for all parties
Relying on the principals of the practice that you’re planning on consolidating is a common occurrence. If they feel that they are being short-changed, this can affect the entire deal. Being honest and open is also important to ensure everyone is satisfied with the deal. Fairness throughout the transaction is paramount, so everyone is on the same page.
Get rid of the “us vs. them” mentality
The “us vs. them” mentality can be very detrimental to a successful deal, as it can lead to an environment of culture shock. This is why it’s important to address this issue immediately. Before the operations manager begins planning the various logistics of the deal, it’s also important to get the culture shock under control.
One of the most important factors you should consider when making a successful deal is the language that starts at the top. This should be changed to include words such as “we” and “our.” This will help employees communicate effectively and create a strong culture within your practice.
Make sure everyone is informed that their job is safe. If employees believe they are being fired immediately, this can lead to a negative spiral, affecting the company’s image and morale.
Reputation is valuable
One of the easiest ways to close a deal is by inviting potential new acquisitions to speak with one of the groups that you already have. Your reputation is very important, especially to others. Other people’s opinions of you are taken more seriously than your opinion of yourself.
Avoiding damaging relationships by not listening to key players or engaging inappropriately is doubly important. Doing this can negatively affect the deal. Look at their reviews as well. See how patients react to the outcomes of their surgeries, whether they like the results and if they were treated well. Just like your reputation matters, theirs does as well.
Know when to walk away
There are many factors you should consider when it comes to closing a deal, but one of the most important factors you should never consider is the belief that acquisitions are worth doing just for the sake of doing them.
Sometimes, the other party’s organization doesn’t fit into your wheelhouse. Sometimes, you may find that the surgical practices that you bring to the table don’t quite align with the surgical practice you’re trying to do an M&A with.
Align yourself with the right people
As an outsider, you will not be able to quickly generate support from the company’s trusted sources. This is why it’s important to show your commitment to these individuals early. Usually, these individuals aren’t involved in the sale, so they should be regularly communicated with so that they can make informed decisions. Successful transactions are more likely to be executed if all parties are working together to reach a common goal.
One of the most important factors that you should consider when it comes to making a successful deal is having a strong and healthy relationship with the parties you’re merging with. This will allow you to connect closely with both parties during the transition. For acquisitions, ensure you’re focused on delivering on the promise you made to everyone.