LEGAL LEANINGS: Due Diligence Strategies: How Buyers Can Preserve Human Capital in Healthcare M&A
By ALLISON TUOHY
Merging with or acquiring healthcare entities can often be complex, with many competing considerations. As purchase price is contemplated, acquiring entities are not only evaluating the profits of the entity being acquired but also considering key employees and the value they provide post-closing. Key employees and service providers undoubtedly bring significant value to healthcare practices and companies through their industry-specific expertise and experience. An acquiring entity must conduct due diligence to assess what measures can or are being implemented to incentivize key employees to remain with the new entity post-closing. Incentives such as retention bonuses and stock options tend to work well when utilized alone, but can also [Read More]