Congratulations! So What’s Next? 

The Post-M&A Success Guide

Mergers and acquisitions (M&As) are undeniably challenging, and while the signing of the deal is a significant milestone, it is by no means the end of the journey.

In fact, the real work begins after the ink has dried on the contract.

If you think the post-acquisition is a time of great uncertainty and anxiety, just imagine how employees, customers, and stakeholders feel.

So it’s up to you—the leader—to navigate the transition period with skill and sensitivity. 

In this article, we’ll examine what you should focus on post-deal to ensure a smooth and successful integration. 

From defining clear objectives and communicating effectively to managing cultural differences and integrating financial systems, we’ll explore the key action points that can help maximise the value of the acquisition and set the stage for long-term success.

Define Your SMART Objectives 

Clearly outlining your goals for the acquisition and developing a detailed integration strategy is essential. This will provide a roadmap for the entire process and help align all stakeholders towards a shared vision. 

Objectives should be specific, measurable, achievable, relevant, and time-bound (SMART).

When setting SMART objectives, it’s essential to involve key stakeholders from both the acquiring and acquired practices. This might include the owners, practice managers, and senior clinical staff to ensure that the objectives are realistic, achievable, and aligned with the overall vision for the merged practice.

One effective strategy for setting objectives is to start with the goal in mind. What do you want the merged practice to look like in one year, three years, or five years? Work backwards from these long-term goals to identify the mission-critical milestones.

Communicate Clearly

Effective communication is vital during the transition period. Keep employees, customers, and stakeholders informed about the progress of the integration and any changes that may affect them. Transparency and regular updates can help alleviate anxiety and maintain trust.

Here are some communication strategies to consider during the post-acquisition phase:

Plan Your Comms

Create a comprehensive plan outlining key messages, channels, and timelines for internal and external communication, such as employee updates, patient notifications, and press releases.

Hold a Kick-Off Meeting

Organise a meeting with all employees from both practices to formally announce the acquisition and introduce the leadership team. Use this opportunity to share the vision for the merged practice, outline the integration plan, and address any initial concerns or questions.

Keep Comms Rolling

Set a schedule for regular communication updates, such as weekly or monthly emails, newsletters, or meetings. These updates should provide progress reports on the integration and highlight upcoming changes or milestones.

Appoint Integration Ambassadors

Identify key employees from both practices who can serve as integration ambassadors. These team members can act as liaisons between the leadership team and the rest of the staff, helping to disseminate information, gather feedback, and address concerns.

Centralise Your Info

Develop a centralised repository for all integration-related information, such as FAQs, policy documents, and training materials. This could be an intranet site, a shared drive, or a collaboration platform like Microsoft Teams or Slack.

Engage with Patients

Communicate with patients about the acquisition and any changes that may affect them, such as new office hours, additional services, or changes to billing and finance. Use multiple channels, such as email, direct mail, and social media, to ensure that all patients are informed.

Focus on Cultural Integration

Cultural integration can be one of the most challenging aspects of a merger or acquisition, but it is also one of the most important. When two practices come together, they bring distinct cultures, values, and ways of working. These differences can lead to tension, conflict, and reduced productivity if they are not addressed and reconciled.

Start by conducting a thorough assessment of each practice’s culture. Based on this analysis, develop a cultural integration plan outlining specific strategies and initiatives to unite the two cultures. 

Some examples might include: 

Joint Team-Building

Social events, volunteer projects, or team-building workshops can bring employees from both practices together in a fun and engaging way, helping to break down cliques, foster connections, and build trust.

Collaboration

Create opportunities for employees from different departments and practices to collaborate on projects or initiatives. This can expose them to new perspectives and ways of working while fostering a sense of shared purpose and accountability.

Leadership Alignment

Ensure that the leadership team is aligned on the merged practice’s vision, values, and goals. Provide training and coaching to help leaders model the desired behaviours and communicate consistently across both practices.

Employee Engagement

Seek regular employee feedback on how the cultural integration is progressing and use this feedback to make adjustments and improvements. Celebrate successes and milestones along the way and recognise team members who are exemplifying the desired culture.

Retain Key Talent

Identifying and incentivising critical personnel from the acquired company is crucial to maintaining business continuity and preserving valuable knowledge and expertise. 

Engage with key talent early on, communicate their roles and responsibilities, and offer competitive compensation and benefits packages to encourage retention.

The first step in retaining key talent is identifying top-performing dentists, skilled specialists, experienced practice managers, or other employees with unique skills or knowledge. 

Once key talent has been identified, engage with them early on in the integration process through one-on-one meetings to discuss their concerns, aspirations, and motivations and reassure them of their value to the organisation. 

Be transparent and honest. Listen actively to feedback and ideas and use these conversations to develop personalised retention plans for each key individual.

These plans may include a range of elements, such as:

Competitive Compensation and Benefits 

Ensure that key talent is being compensated fairly and competitively and can access attractive benefits like health insurance, retirement plans, and paid time off.

Personal Development

Provide opportunities to learn new skills, take on new challenges, and advance their careers within the merged practice. This may include training programs, leadership development initiatives, or mentorship opportunities.

Work-Life Balance 

Consider offering key talent more flexibility in their work schedules or arrangements, such as the ability to work remotely or to adjust their hours to accommodate personal commitments.

Recognition and Rewards

Implement programs to recognise and reward contributions and achievements, such as performance bonuses, employee of the month awards, or public recognition at team meetings.

Integrate Financially

Aligning financial systems and identifying cost synergies is a crucial priority post-acquisition. 

Integrating these elements can be complex and time-consuming, but it is essential for ensuring the financial health and stability of the merged practice.

The first step in financial integration is to thoroughly review both practices’ financial processes, systems, and policies. 

This may include examining:

• Accounting systems and chart of accounts
• Billing and collections processes
• Payroll and benefits administration
• Budgeting and forecasting methods
• Tax compliance and reporting requirements
• Supplier contracts and purchasing agreements

Develop a plan to integrate the two practices’ financial systems and processes by consolidating accounting systems and implementing new software or tools to streamline financial reporting and analysis. 

It is essential to involve key stakeholders from both practices in this process, including finance staff, practice managers, and IT personnel, to ensure that the integration plan is comprehensive and feasible.

Manage Patient Transition

Patients are the practice’s lifeblood. Ensuring their satisfaction and loyalty throughout the transition process is essential for maintaining revenue streams and long-term success.

External Comms

The first step in managing patient transition is communicating clearly and proactively with patients about the acquisition. Sending letters or emails to inform patients of the change in ownership and introducing the new practice leadership and staff is an ideal way to reassure patients that their care will continue uninterrupted.

It’s important to emphasise the merger’s benefits for patients, such as expanded services, improved technology, or more convenient locations.

In addition to written communication, consider holding patient events or open days to introduce patients to the new practice and staff.

Patient records

Another critical aspect of managing patient transition is ensuring that patient records and data are transferred seamlessly between the two practices. 

This may involve integrating electronic health record systems, migrating patient data to a new platform, or implementing new diary or billing processes. 

Ensure patient data is accurate, complete, and secure throughout the transition process and that patients experience no disruption in their care or access to their medical information.

Building Revenue Streams

Focus on identifying opportunities to cross-sell products or services from the acquiring practice to the acquired practice’s patient base. 

Consider introducing new treatments or procedures, such as cosmetic dentistry or orthodontics, or offering promotions or discounts to encourage patients to try new services. 

However, be sure to approach cross-selling with sensitivity and respect for patients’ needs and preferences and to avoid aggressive or pushy sales tactics.

Track and Improve

Establish clear metrics and KPIs to track the success of patient transition efforts. 

Consider metrics such as:

• Patient retention rates
• New patient acquisition rates
• Patient satisfaction scores
• Revenue per patient
• Cross-selling rates and revenue

By monitoring these metrics regularly and comparing them to industry benchmarks and historical performance, you can identify areas for improvement and make data-driven decisions to support post-deal patient retention and growth.

Monitor Progress

Establishing metrics and conducting regular reviews is essential to tracking the integration’s progress and identifying any areas that require attention. Use data-driven insights to make informed decisions and adjust strategies as needed. 

The first step in monitoring progress is to establish clear metrics and key performance indicators (KPIs) that align with the integration’s goals and objectives. These metrics may vary depending on the merged practice’s specific needs and priorities. 

Examples include:

Financial

• Revenue growth
• Profitability
• Cost savings
• Cash flow

Operational

• Patient Volume
• Appointment wait times
• Treatment plan acceptance rates

Quality

• Patient satisfaction scores
• Clinical outcomes
• Infection control compliance

Human Resources

• Employee turnover rates,
• Job satisfaction scores
• Training and development participation

Marketing

• ROAS rates
• New patient acquisition rates
• Referral rates
• Online review scores

It is crucial to stay flexible and adaptable throughout the integration process, but be sure to maintain a clear focus on the overall goals and objectives.

Be prepared to make adjustments based on both quantitative and qualitative data, such as reallocating resources, modifying timelines, or pivoting strategies. 

Prepare for Challenges

Merging two dental practices is a complex and challenging endeavour that requires careful planning, execution, and monitoring. While the integration process can be daunting, it also presents significant opportunities for growth, innovation, and value creation. 

Anticipating and preparing for potential challenges while celebrating achievements can help ensure a successful and sustainable integration.

Some common challenges that may arise during the integration process include:

• Employee resistance to change or cultural clashes between the two practices
• Patient confusion or dissatisfaction with changes to policies, procedures, or staff
• Technical difficulties with integrating systems or transferring data
• Financial strain or cash flow issues related to integration expenses or revenue disruptions
• Legal or regulatory compliance issues related to contracts, licences, or certifications

To mitigate these risks, develop contingency plans and strategies for addressing potential challenges proactively.

• Conducting thorough due diligence and risk assessments before the merger
• Developing clear communication plans and change management strategies
• Providing training and support to staff to help them adapt to new roles and responsibilities
• Implementing patient education and outreach programs to minimise confusion and attrition
• Securing adequate financing or reserves to cover integration expenses and potential revenue disruptions
• Engaging legal and regulatory experts to ensure compliance with all relevant laws and regulations

Celebrate Successes!

Don’t overlook the importance of celebrating achievements and milestones throughout the integration process. 

Recognising and rewarding staff’s hard work and dedication can help build morale, engagement, and loyalty, even in the face of challenges and uncertainty. 

Consider the following simple strategies to celebrate success and build morale:

• Holding regular team meetings or events to acknowledge progress and successes
• Providing bonuses, promotions, or other incentives to staff who demonstrate exceptional performance or leadership
• Sharing patient feedback and testimonials that highlight the positive impact of the merger on care quality and outcomes
• Publicising the merger and its benefits through local media, industry publications, or social media channels
• Hosting a grand opening or ribbon-cutting ceremony to mark the official launch of the merged practice

Engage the Experts

Navigating the post-merger integration process in a dental practice acquisition requires a multifaceted approach.

Getting it right depends heavily on effective planning and preparation before the deal is finalised through thorough due diligence, risk and opportunity assessment, and stakeholder engagement.

Investing time and resources in these critical pre-merger activities can lay the foundation for a smoother and more successful integration process while identifying and mitigating potential challenges before they arise.

Engage Pluto Partners!

As the UK’s leading specialists in dental and healthcare mergers and acquisitions, Pluto Partners has the knowledge, experience, and network to help dental practice owners navigate the complexities of the M&A process, from pre-merger planning to post-merger integration and beyond. 

With a track record of successful transactions and satisfied clients, Pluto Partners is uniquely positioned to provide the strategic advice, technical expertise, and hands-on support you need to achieve your M&A objectives.

With our expert guidance and support, you can approach the M&A process confidently and clearly, knowing that you have a trusted partner by your side—every step of the way.

Contact Pluto Partners today to schedule a consultation and learn more about how we can help you achieve your goals. 

Aimee Deavin–Baker

Head of M&A at Dental Beauty Partners

“Max brokered on our recent completion of Ace Dental in Kentish Town. He was great at liaising between all parties and helping to push things along so that we were able to complete within the agreed timeframe. Max is always easily contactable and quick to respond.”