Background and challenge
A leading multispecialty women’s health group providing patient services in obstetrics and gynecology recently acquired a physician group to continue its growth trajectory. The management team was under significant pressure to close the transaction as quickly as possible, but they were highly capacity-constrained and did not have merger integration experience. L.E.K. Consulting was engaged to provide a structured and disciplined process to expedite the transaction and assist with business planning.
Approach and recommendations
We first developed an integration strategy and principles that aligned with the acquisition thesis and value drivers. A detailed integration plan was established to transition staff and functional activities from the acquired offices onto the client’s platform. We created an integration team and physician council composed of individuals from both sides of the acquisition. We developed the first 30 days communication plan, drafted communications content and implemented a detailed integration tracking platform and work plan. We also identified key acquisition risks (e.g., talent retention) and developed actions to mitigate those risks.
To support business planning, we assessed current management capacity and experience. We also reviewed the asset’s strategies and identified ancillary revenue opportunities (e.g., an in-house laboratory) from the client’s playbook. After evaluating growth levers, the potential challenges of each lever and risks, we adjusted the near-term implementation plan as needed.
L.E.K. drafted a road map and developed a near-term implementation plan. We established an integration management office, and defined work stream and sub-work stream structures and the associated work plan. As part of this process, we identified leads, initial phasing, duration, interdependencies and milestones. Our support ensured rapid and smooth integration, allowed timely communication and enabled millions of dollars in synergies.