The key questions for any given deal will depend on why the organization that is pursuing the transaction is doing so, what it hopes to achieve, and what information it requires to make well-informed decisions about the path forward. Here are some questions that are imperative to ask during the due-diligence period:
- What impact will risks identified during due diligence have on the combined organization post-transaction?
- How will the capital commitments impact the combined target and larger system?
- How will acquisition of the target affect patient care patterns, considering care volume that may shift from acquirer facilities to target facilities and vice versa?
- What services should be consolidated, expanded, or redistributed among sites and locations?
- What impact will extending acquirer ACO participation, narrow network products, or other value-based payment and population health initiatives to the target have on future volumes and financials?
- What local market dynamics and competitor initiatives need to be accounted for when considering future growth estimates?
- If the transaction does not move forward, what would the impact be if a competitor acquired the target?