Merger and Acquisitions are the buying; selling, dividing
and combining of different companies that can assist an organization grow without
using a joint venture. Merger is association of two companies into one, whereas
an acquisition happens when one company takes over another and becomes the new
owner (a large hospital system buying a home health company or a smaller
regional hospital).
In the healthcare industry this is primarily driven by competitiveness
and profitability. The final goal is to increase one’s ability for success. As
the company wants expands its core business of healthcare service, often they
also participate in different new areas of services that they are not
proficient; aligning with a company who can help with that part is one option
and the other could be by merger and acquisition.
Disclaimer: Opinions expressed are solely personal and do not express
the views or opinions of any other person or entity.
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