Navigating the Complexities of Mergers and Acquisitions with Mike White

Mergers and acquisitions exist in the healthcare industry too, and just like in any other industry, there are a LOT of concepts to consider, one of them is business valuation.

In selling a business we ask, what is the value of this business? In what position is this business in a wide scope of the business industry? What methods can we try to make this business more valuable than it has ever been?

In this episode, Mike White gives fresh insights about these questions we pondered and shed light on concepts that could help sellers appeal to their potential buyers while understanding these buyers’ perspectives.

In this Episode, You’ll Discover

• Mergers and acquisitions in the healthcare industry
• Effects of inflation, recession, and layoffs on mergers and acquisitions in healthcare
• How are businesses usually valued— and how to increase it
• The different components of a deal, such as cash at close, rollover equity, and earnouts
• Long and complicated process of selling a business
• Significance of having the right partner
• Importance of understanding the tax implications and legal considerations when selling a business

 Episode Insights

• That’s one of our big struggles— quality of data. Because if there’s not good quality, it’s very difficult to propose to a buyer that the seller has everything handled in their business and therefore makes it more valuable. – Mike White
• You’re gonna take things personally. You have the emotional side and the reality, as we all know, we still have to run our business day to day. So having somebody run alongside you will help you through. – Benjamin Hernandez
• Always build your team internally and externally to your organization. Hold the team accountable but make sure you have the advisors that are helping you through those conversations. – Benjamin Hernandez
• Make sure we’re not just spending everything because our CPA told us to do that. There are good ways to get the same tax impact with better looking financial statements. Make sure you’re looking for those opportunities to improve your cost structure, whether it be staffing, advertising, or supply and look for those opportunities to pick up your own multiple valuation. – Benjamin Hernandez
• I think, for me, it would be, if you’re thinking of selling, do your homework early on. Really think about what it is that you need. Envision yourself in that position and go down the line of “what is my number?” “Am I willing and wanting to work at least four years or at least longer than that?” If not, make sure you reconcile that. – Mike White

About the Guest:

Mike White holds a BBA and MSA from Texas Tech University. He has spent the majority of his career in public accounting, helping entrepreneurs achieve their goals and vision. He has had the opportunity to work with many different industries, including lawyers, consultants, and marketing and media companies.

Recently, they have spent most of their time working with DSOs and MSOs, along with individual dental and physician clients. His primary focus is on telling the right story within the financial statements and helping to set goals to drive performance within the business.

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