M&A: Succession Planning for the Healthcare Industry

By: Garrett Shinn, CPA

When it comes to navigating the rapidly changing landscape of the healthcare industry, many facilities are finding that bigger is better. As a result, physician practices and hospitals are turning to mergers and acquisitions to increase cash flow, reduce expenses and improve market share.

An experienced CPA can provide valuable services every step of the way.

Planning and Decision Making

  • Determine whether a merger or acquisition is right for your practice
  • Understand healthcare reform
  • Analyze financial positions
  • Perform valuations

Structuring the Transaction

  • Create pro-forma financial projections
  • Minimize taxes and other related costs
  • Make decisions about the structure of the new entity
  • Finalize operating and management agreements

Achieving Future Success

  • Establish concordant policies and procedures
  • Implement appropriate compensation model
  • Properly allocate entity expenses
  • Take advantage of becoming a larger entity: economies of scale, increased borrowing power, and opportunities to increase revenues and reduce expenses

As common as mergers and acquisitions have become, many of them still fail, often due to lack of planning or proper integration. At every stage in the process, consulting with a CPA, along with other professionals, can provide crucial insight needed to ensure the consolidated entity’s continued success.

If you have any questions or would like to learn more about succession planning for the healthcare industry, please contact the Shinn & Co team at info@shinnandcompany.com or call 941.747.0500.