While many of my recent writings have focused on leadership and coaching, I also work with healthcare organizations on strategic planning, conflict resolution, and M&A advisory. Given the turbulence in today’s landscape, now feels like the right moment to speak to that part of my work.
As a healthcare strategy and M&A advisor, I am struck by how much uncertainty surrounds us right now. M&A activity has noticeably slowed, but the runway is still open for organizations that understand their strengths and bring clarity to their capabilities and assets.
IS IT A PAUSE OR A RESET?
Yes, the uncertainty is real and is what is. But it also presents unique opportunities for organizations to sharpen their strategy, reassess priorities, and act with intention. Growth doesn’t stop, it evolves and there lies opportunity for those prepared to see it and move on it.
STRATEGIC ADVANTAGES YOU CAN LEVERAGE
Balance-Sheet Strength: Health organizations with strong cash and moderate debt can secure better deal terms amid hesitation from others.
Diversify Revenue Streams: Acquiring assets like physician groups, digital-health assets, post-acute care, or AI diagnostics can help stabilize earnings and open new value streams.
Capability Acceleration: Buying analytics teams, value-based care infrastructure, or specialty networks often proves more cost-effective and time-efficient than developing them in-house.
HOW CAN AN EFFECTIVE M&A STRATEGY BE AN ENGINE FOR GROWTH?
M&A isn’t just about expansion. it’s about strategic shaping. The most successful organizations approach deals with clear playbooks that define where they will compete, what value they bring, and what gaps they need to fill.
A strong playbook identifies attractive spaces and articulates the value-creating capabilities the organization brings. It also recognizes areas of weakness to avoid missteps. In my experience, the most effective playbooks also include well-defined processes to uncover and generate value.
REFRESH THE PLAYBOOK.
- Define where to play: Map service lines, geographies, and adjacencies aligned with your long-term vision.
- Identify patterns: Use a structured, hypothesis-driven method to assess if targets address a real capability or market gap.
- Execute with discipline: Build an “A-team” for diligence, negotiation and integration. Bring in these leaders early to uncover surprises and risks. We all want fewer of those into execution.
- Plan integration before signing: Build the value-creation model before signing the deal, not after. Pressure-test synergy assumptions, leadership bandwidth, and IT roadmaps.
- Govern with Intent: Establish a steering committee with clear decision rights that oversees culture and 30-60-90 day milestones.
CULTURE: THE HIDDEN ENGINE OF DEAL SUCCESS
You have all heard me say this, culture is just as important to value-creation as the hard numbers.
Understanding culture involves multiple layers:
- Purpose & Vision: Is your “why” that is meaningful and clear on what success looks like?
- Core Values & Behaviors: The common set of behaviors people actually do and follow, not what is in the strategic plan.
- Management Practices & Working Norms: This is often where friction hides. How are decisions made? Performance measured? Meetings run, talent developed, as detailed as, how fast do you respond to emails and is it all hours?
When merging medical practices or systems, each has its own way of operating and rhythm. Map the similarities to accelerate integration and identify the differences and friction points to avoid value erosion. Use workshops, sensing sessions, interviews, and targeted change-management strategies to address these gaps early..
Be clear on goals and success metrics, and how to achieve them or exceed them. People also need to understand their evolving roles as integration begins.
I often hear, “We plan to include an integration team after the deal and we have a plan.” But from my experience, when integration is an afterthought, value is often left on the table. The most successful deals invest as much or more in integration as they do in diligence. Guide your team through decisions from Day 1, and address any potential issues early and often.
Leadership and Communication during M&A
During M&A, leadership is not just messaging, it is about building a true connection. That means tailoring communications to resonate with different audiences including board members, clinicians, back-office staff, customers. Speaking to them, not at them, and in their language.
Leaders should “ask, don’t tell”. Conduct listening tours and Q&A forums to surface roadblocks early. Ask what is difficult, what concerns they have, why they exist, and what they need to do to mitigate or address them and how you can support them. The adage “two ears, one mouth” applies here, emphasizing the importance of listening over talking.
Read the room. Shift based on energy. Acknowledge concerns, even if you disagree. Adapt and be empathetic; that is how you build trust and openness.
Key Takeaway
Despite the 2024 slowdown and ongoing geopolitical and regulatory scrutiny, M&A is expected to see greater activity in 2025 and 2026. Organizations that combine disciplined targeting, early integration planning, and culture-aware leadership will be well-positioned to create significant value when market conditions improve.
READY TO MOVE FORWARD?
Are you preparing for an acquisition, divestiture, or strategic partnership? Let’s ensure you do it with clarity, confidence, and proven process that delivers and sustains long term value. I partner with healthcare leaders to craft M&A strategies that deliver on Day 1 and beyond.
Let’s connect and together we can build a roadmap for your next move forward.
