On behalf of McBrayer, McGinnis, Leslie & Kirkland, PLLC posted in Mergers and Acquisitions on Thursday, October 29, 2015.
In the health care industry, saying competitive and operating efficiently is important for survival, and businesses in this industry need to continually seek to consolidate resources to ensure they are operating in as streamlined a fashion as possible. One of the tools that is sometimes used in this effort is mergers and acquisitions. When companies combine resources and markets in a well-planned merger, they can help to ensure greater success.
Mergers and acquisitions in the health care industry have been quite active recently, particularly among health care insurers. Most recently, UnitedHealth Group Inc. is well on its way toward proposing a potential deal for the acquisition of closely held, Memphis, Tennessee-based health insurance company Helios. Talks are said to be advanced, though not complete, so it remains to be seen how the
Helios, which itself was formed out of the merger of two other companies, deals in workers’ compensation claims and pharmacy benefits management. UnitedHealth Group, if joined with the company, will be able to expand its offerings in the area of workers’ compensation and combine resources with its partner company, Optum, which has its own pharmacy management business. The deal is said to be worth up to $1.7 billion.
Working through the merger process is certainly not always an easy matter. Navigating negotiations with the company under consideration, handling internal challenges to any proposed plans and working with the merger review process requires considerable time, patience, and business know-how. Working with experienced legal counsel ensures that any legal issues arising in the process are effectively and thoroughly addressed.