How Mergers & Acquisitions Impact Your Dental Practice What is a Merger? A merger is a formal agreement between two or more organizations in which the combined companies become one entity. The process of merging may involve acquiring another company by an existing company, either through purchase or merger.
What is an Acquisition? An acquisition is a similar transaction in which one organization acquires another, usually through purchase and/or merger. An acquisition can increase market share, add new products and services to a business line, or expand into new markets.
What are the potential impacts of a Merger or Acquisition on a dental practice? The potential impacts of a merger or acquisition on a dental practice can vary greatly, depending on the deal's specifics. But in general, mergers and acquisitions can lead to significant changes for both the target practice and its employees. The most apparent change is usually an increase in size—the combined company may become much more extensive than either predecessor entity was alone. This may cause staff shortages as new positions are created to accommodate new employees. It could also mean increased competition from other practices within the same region or market. Other effects of merger or acquisition activity on dentists include: ● Changes in the pricing structure of dental services. ● The introduction of new technology into the practice (often due to acquisitions). ● Changes to office policies. Given these potential consequences, dentists need to understand what might happen if their practice were to enter into either type of deal—and how they can prepare for whichever path appears likely.
Tips for surviving and thriving during a Merger or Acquisition The key to mergers and acquisitions is to be prepared for whatever may come your way. Here are a few tips that can help you survive and thrive during this challenging time: 1. Stay informed—Keep up with all the news related to merger and acquisition activity by subscribing to industry newsletters or following relevant social media accounts. This will allow
you to stay on top of changes in the market, plan for potential consequences, and protect your business interests if necessary. 2. Redesign your practice strategy—Consider whether there are any areas of your practice where you could streamline operations or reduce costs. This may help you better compete in the market and avoid unwanted consequences from a merger or acquisition. 3. Stay positive—Despite challenging circumstances, it's important not to give up hope – Mergers and acquisitions can significantly improve a dental practice's overall financial performance. If you approach this process positively, it will likely result in a much smoother transition.