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Unlocking value in large-deal healthcare M&A: How to achieve transformation during integration

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Healthcare as an industry is evolving at an accelerating pace with organizations placing big, bold bets on vertical integration, digital enablement, and the development and scaling of healthcare ecosystems . Merger and acquisition (M&A) activity within the industry is increasing, even as we continue to navigate the COVID-19 pandemic. Reflecting what we have learned since March 2020, organizations are refreshing their long-term plans and have greater clarity on the strategies, assets, and capabilities needed to succeed in the years to come. 1

In our multi-decade research on types of M&A , we consistently find that across industries, including healthcare, a programmatic M&A approach is most likely to deliver the highest value, on average, with the least risk compared to other approaches. However, large deals (where the partner is more than 30 percent of the acquirer’s size) also have the potential to unlock substantial value but with greater risk. In our analysis of deals in the top 2,000 global companies by market capitalization over the past decade, large healthcare deals were equally likely to generate big wins as big losses. These deals are often difficult to execute and benefit from transformative value capture to deliver on their full potential. As […]

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