by Carrie Carson

The Challenge

In the drive toward integrated care, many health systems are pursuing mergers with behavioral health organizations to provide comprehensive wellness services. These merger and acquisition (M&A) strategies offer attractive benefits for providers, patients and communities. But not every merger lives up to expectations. Why do some fail? The answer, all too often, is cultural misalignment.

A nonprofit healthcare system faced this exact challenge. They had begun negotiation with a potential behavioral health partner. However, leadership was uncertain about cultural fit. They engaged Point B’s M&A experts to navigate the due diligence process, with an emphasis on culture.

Comprehensive Due Diligence

Point B brought the breadth of our M&A expertise to help thoroughly vet the merger.

We assessed strategy, financials, technology, service overlap, patient and community needs, and other key areas. Our experts worked in partnership with leaders from both organizations to illuminate risks and opportunities. Plus, we facilitated and supported reporting and presentations to the organizations’ respective boards of directors to inform their decision-making processes.

Assessing Cultural Compatibility

Leadership at both organizations recognized that cultural fit was key to the merger’s success. Our Culture, Capability, Capacity and Change Survey provided essential insights into cultural alignment, gaps and risks that would impact each organization’s ability to thrive and change during the merger.

We looked at vision, mission, structure and leadership, and highlighted communication and change risks to mitigate during the merger. The assessment was scope to provide valuable insights, yet scoped to fit the organization’s limited nonprofit budget.

Ultimately, the board decided not to pursue the merger. They credit Point B’s due diligence and cultural assessment with helping inform the right decision for the organization and those they serve.

Meaningful Results

Point B provided the analysis and insights that organizational leaders needed to make a go or no-go decision on the merger, including:

  • Robust and cost-effective due diligence
  • Flexible and insightful analysis of cultural alignment
  • Confidential assessment of benefits and risks
  • Replicable tools, including the cultural alignment survey, which can be used in future M&A processes