Mergers and acquisitions (M+A) are complex transactions that involve multiple parties, intricate negotiations, and significant financial investments. While the excitement surrounding potential synergies and growth/exit opportunities often takes center stage, there is a lesser-known, yet equally important factor that can significantly impact the success of an M&A deal: deal fatigue.

Deal fatigue refers to the exhaustion, frustration, and reduced enthusiasm that can set in over time among key stakeholders involved in an M+A transaction, both from the seller’s side and the buyers’ side. It is a phenomenon that can gradually erode the effectiveness of the deal-making process. If not managed properly, deal fatigue can ultimately jeopardize the entire transaction, which we at VERTESS have witnessed firsthand.

A question we frequently get asked these days from potential sellers of healthcare businesses is, "Considering the current market and economy, will my valuation take a hit?" The reality is that this is a yes and no answer. The overall healthcare M+A market has been a bit slower as of late compared to the feverish activity of around 24 months ago, and while valuations may have plateaued or dipped in one healthcare vertical, they may be stronger in another. 

It may seem like a no-brainer that healthcare business owners who are about to embark on a transactional journey would have considered how likely a potential buyer is to actually facilitate the close. Yet surprisingly, this idea of "certainty of close" is often overlooked by would-be sellers in potential healthcare M+A transactions.

At VERTESS, we often get a first-hand look at the good, the bad, and the ugly of post-transaction integration. No two healthcare deals are transacted the same, and no two deals will ever integrate the same. The simple truth is integration is just as much a process as completing a merger or acquisition — and likely a lengthier one as well.

A silver lining of the public health emergency is that it has forced many healthcare businesses to reevaluate their operations and refocus on what truly drives their success. For those businesses planning for a transition or future diversification, this has become even more important. One thing we have learned from the past year is that not everything we think is important really is necessary. In addition, we now have a greater understanding of and appreciation for the marriage of virtual care and transparency and how they, when combined, represent a powerful relationship.