Mergers & Acquisitions: Surround yourself with strong players
A. Like many aspects of life, it's important to have a strong team around you when you're purchasing or selling a DME business. The ideal team will include both inside and outside players, each bringing a unique experience and know-how. The type and number of team members will vary greatly from deal to deal. Nonetheless, there are some strategic members that should be a part of each team.
First, your company, whether buying or selling, should have a "gate keeper" who is the key contact person with the responsibility of being the go-between for the company and all outside team members. Having the right contact who understands (and knows how to play) this role is key. This person should have authority to make decisions, be available and timely in responsiveness, and have a good working relationship with all other team members. Second, you should have an HME reimbursement specialist who can review the claims history and determine levels of risks associated with prior claims and current billing practices. This person will assist in performing or reviewing chart audits of the seller's claims, and assist in general consulting for the numerous DME-specific issues that will arise. Third, regardless of what side of the transaction you are on, you must have legal counsel with experience not only in M&A transactions, but specifically in the healthcare field. Finally, you may also need other team members such as specialists in taxation issues, ERISA/benefits issues, labor/employment/intellectual property, lending/finance and real estate.
The key component to a quick successful purchase or sale of a DME company is preparation.
Stephanie Morgan Greene is general counsel for Harrington Management Group, also known as The Audit Team. Reach her at firstname.lastname@example.org or 888-833-3478.