Here are 31 benchmarks to know on mergers and acquisitions from a variety of sources in the industry.
HealthCare Appraisers surveyed 15 respondents representing more than 700 surgery centers across the U.S. to formulate its results, including statistics on ASC acquisition activity and competition:
Acquisition activity
1. No change from previous year: 27 percent
2. Decreasing: 33 percent
3. Increasing: 40 percent
Competition for acquisitions
4. No change from previous year: 47 percent
5. Decreasing: 13 percent
6. Increasing: 40 percent
HealthLeaders Media surveyed 190 respondents on mergers and acquisitions. Of all respondents, 128 were exploring and completing deals. Here are the entities those 128 organizations are interested in pursuing:
1. Physician practice: 48 percent
2. Health system: 37 percent
3. Hospital: 29 percent
4. Physician organization: 27 percent
5. Ancillary, allied (home health, rehab, lab): 23 percent
6. Long-term care, skilled nursing facility: 20 percent
7. Retail clinic/urgent care clinic: 20 percent
8. ASC: 19 percent
9. Ancillary (diagnostic, therapeutic, custodial): 18 percent
10. Health plan, insurer: 14 percent
11. Other healthcare organization: 8 percent
12. Other non-healthcare organization: 2 percent
HealthLeaders asked 13 respondents, who said they would not participate in a merger, acquisition or partnership again, why previous MAPs didn't meet expectations. Multiple responses were permitted.
13. Incompatible cultures: 54 percent
14. Governance problems: 31 percent
15. Operational transition problems: 31 percent
16. Financial goals not achieved: 31 percent
17. Disagreement about organizational mission: 31 percent
18. Costs to support the transaction too high: 15 percent
19. Lack of community support: 15 percent
20. Other: 23 percent
Mergermarket surveyed 100 senior corporate and private equity executives from U.S. firms that had completed at least one healthcare deal in the past two years to compile the oversights and challenges facing healthcare organizations in mergers and acquisitions.
Biggest oversights made during due diligence
21. Mismatch in work cultures: 36 percent
22. Outdated IT infrastructure: 26 percent
23. Ill-equipped management team: 18 percent
24. Cybersecurity vulnerabilities or undisclosed breaches: 10 percent
25. Financial misses: 10 percent
Biggest challenge in the integration/post-close phase
26. Allocating investment effectively: 24 percent
27. Making effective cost cuts: 22 percent
28. Culture clash with the acquired company's personnel: 21 percent
29. Capturing identified synergies from diligence: 14 percent
30. Combining IT infrastructures: 10 percent
31. Retaining key personnel: 9 percent