Healthcare Mergers: Making a Smooth Transition

February 14, 2019 by CNH Finance, LP in category “Financing”

Mergers and acquisitions in the healthcare industry are not uncommon. In many cases, healthcare mergers provide wider coverage and quality services to a larger population in need of medial care and assistance. However, healthcare mergers are simultaneously complex and time-sensitive transactions, and need to be handled delicately.

Assessing Resources and Capital in Healthcare Mergers

Existing resources and clients are typically the impetus for most mergers in the healthcare industry. Staff, supplies, equipment, existing receivables, vendor accounts, and even facilities need to be assessed during a merger to decide what needs to be kept, what creates redundancies, and what is no longer necessary. Additionally, ample working capital is necessary at every step of a merger to ensure facilities can can remain functioning and conducting business during the transition. The longer a merger takes to complete, the more it costs across the board.

Leveraging Resources for Capital

Healthcare mergers also offer up opportunities to access financing without having to rely on debt-based loans. As we discussed above, healthcare facilities typically have equipment, receivables, and other owned assets. Those assets have a value which can be used to create a revolving line of credit without forcing a divestiture. This asset based line of credit does not place debt on the balance sheet, nor does it negatively impact credit ratings. The renewable source of working capital can provide the funds necessary to make a smooth and efficient transition during a merger. Any added equipment, receivables, and other assets gained from a merger can be used to increase the amount of funding available. Asset based lines of credit are the only source of financing that grows with your healthcare facility, thereby promoting long-term success.

Asset Based Solutions for the Healthcare Industry

At CNH Finance, we specialize in asset based solutions tailored to the needs of the healthcare industry. Our team performs a deep analysis of assets to get healthcare facilities the most value for what they own, and we take more into account than traditional lenders. We can provide asset based solutions for healthcare mergers, acquisitions, something as simple as capital for purchasing supplies, and anything in between. Contact CNH Finance today and get the capital you need without the burden and restrictions of debt-based loans.

Image for 'Borrowing for Small Businesses: Is it Worth the Risk?'
Borrowing for Small Businesses: Is it Worth the Risk?

Small business owners are inundated with the philosophy that they cannot thrive or grow without borrowing capital from traditional lending channels. Loans, merchant cash advances, and…

Image for 'Loan Denials: Funding Your Business When Banks Say “No”'
Loan Denials: Funding Your Business When Banks Say “No”

Loan denials have been more frequent as of late. As banks tighten requirements for small business owners, entrepreneurs find their options limited. Fortunately, there is a way to finance…

Image for 'Ambulatory Surgery Centers: Working Capital Solutions'
Ambulatory Surgery Centers: Working Capital Solutions

Ambulatory surgery centers provide vital services to patients while simultaneously taking a large burden off of general hospitals. However, ambulatory surgery centers need supplies,…

Image for 'Working Capital Solutions For Small Businesses in Bethesda, MD'
Working Capital Solutions For Small Businesses in Bethesda, MD

For local business owners, finding adequate working capital solutions in Bethesda, Maryland can be a challenge. Bank loans are not always a viable option, for a number of reasons. Going…

CNH Finance
24 East Ave #1285
New Canaan, CT 06840
Phone: (203) 266-3210

Business Development
Long Beach, CA 90803
Phone: (562) 833-7815

Business Development
3334 E. Coast Hwy, Suite 541
Newport Beach, CA 92625
Phone: (714) 520-1788

Melinda Ficek
mficek@cnhfinance.com

Maryland Office
3 Bethesda Metro Center, Suite 723
Bethesda, MD 20814
Phone: (301) 529-9993

Steve Silver
ssilver@cnhfinance.com

Business Development
5050 Quorum Drive, Suite 700
Dallas, TX 75254
Phone: (972) 687-9157

Rossi Felix
rfelix@cnhfinance.com