Mergers and acquisitions (M&A) remain robust in the healthcare industry despite a struggling global economy. Many providers see M&A as part of their growth strategies. That may soon change. New M&A tracking and reporting standards that took effect on 1 January 2009 will dramatically change the way companies negotiate and track accounts for mergers and acquisitions. Some of the changes will increase earnings volatility. Others may affect your organization’s deal structures and acquisition strategy.
If you are strapped for cash or burdened with debt, divestiture may be inevitable. You may choose to divest your organization of underperforming assets to raise much-needed cash and respond to stakeholder pressures for improved financial performance. For some providers, declines in credit ratings and market value severely limit their options. But don’t expect a good price for divested assets. There are few buyers. Lenders scrutinize deals closely, leading buyers to increase due diligence. Sales take longer. Prices are lower. It’s a buyer’s market and making deals is tough.
US Healthcare Provider Practice