Search & Acquire

healthcare

Case Study: Search & Acquire


australian-unity-200px

Remedy Health Acquisition Strategy Realised

Background

Remedy Health is a division of Australian Unity that provides healthcare solutions to public and private healthcare organisations, corporations and individuals.

With plans for rapid and sustained growth, management had decided to pursue an aggressive acquisition strategy. After working with another advisory firm without success, Remedy Health engaged Kennedy Needham - hoping we could deliver the results they were looking for.

Approach

Kennedy Needham designed a thorough ‘acquisition template’ to objectively assess potential businesses and their strategic fit. This process enabled us to uncover new acquisition opportunities and different businesses to assess and approach.

Outcome

After applying the template to over 130 businesses, we instigated dialogue with a small number of businesses.

We have since helped Remedy Health acquire a number of businesses over this period.

Key learnings

  • Searching for and selecting prospective businesses is a strategic exercise. A well thought out acquisition template ensures all variables and risks are considered - including the type of company, existing management, culture, growth potential and more.
  • Approaching small businesses that are not looking to sell is challenging. Advisors must engage skilfully and know how to articulate key benefits with conviction. When small business owners see that working with a large company can present a less risky and more lucrative path forward, engagement and negotiations are a lot more successful.
  • Because Kennedy Needham works on both sides of acquisition transactions, we are able to manage expectations and offer small businesses a great level of empathy.