Closing The Deal... Is It Really Closed?
July 21, 2009 by Morgan Lynch
In the past several months, we’ve seen it all— for-profits buying not-for-profits, not-for-profits buying not-for-profits and even not-for-profits buy for-profits. Whatever the case may be, M&A transactions follow standard closing procedures—sign the legal documents, check the financials, and turn over the keys.
But then what? In too many cases, “closing” on a deal is not really the end of a transaction. In fact, it may just be the beginning of some public and controversial conversations…
- “Will I lose my job? What about my health benefits, vacation time and shift schedule?” ~ Your NICU nurse.
- “How will this change the impact this hospital has had on the community – jobs, taxes, healthcare?” ~Your Mayor and local Senator.
- “This deal better be in line with the contracts we signed.” ~Your local union leader.
- “I need to think about how this changes my referral patterns.” ~Your top-admitting physician.
Don’t know the answer? That’s OK. Just don’t go silent.
Not addressing one of these questions will only lead to greater public discussion. Translation: the beginning of the rumor mill.
A simple, “I understand, and we’re working on that. As soon as we know, you’ll know” goes a long way.
Your attorneys may tell you differently. But, if you have the opportunity, it’s a pretty safe bet that simply addressing the question is a good first step before the question becomes a distracting issue – or even an issue at all.
