Why Merge with National Birth Centers?
Independent birth centers that have been in business many years are merging with National Birth Centers, and they love the results. They aren't giving up control or the ability to make decisions for their companies; they are gaining huge advantages by increasing revenue and giving themselves the ability to benefit from our payer contracts with major insurance companies.
Many people think mergers are for huge corporations with big money. But entrepreneurs who grow their businesses through successful mergers are reaping the benefits, and here's why.
Capital, cash and credit
"The formula for a successful merger should be 1+1 = 3, 4 or 5. An ideal merger increases revenue, reduces overhead and redundancies, enables the company to attract more capital, and increases the value of the owner's equity in the company."
Peter Drucker once said, "The purpose of business is to create a customer." I say the purpose of a merger is to create a more satisfied customer. Ask yourself during the merger process, "How does my customer win?" If you can point to more customer service offerings, better pricing, innovative products, and an improvement to the customer experience, then your merger makes sense.
Management talent and experts
Merging presents the opportunity to team up with experts who bring their vision, management, and technical know-how to the table. The ability to leverage management capabilities is a skill and an asset. When Corey Kupfer and Brian Hamburger merged their law firms to create Hamburger Law Firm, LLC, two rainmakers with decades of M&A and corporate experience were tasked with operating on themselves. Kupfer credits the success of the merger to "a cultural fit, shared vision and values, and complementary personalities and leadership styles." The two entrepreneurs play well off each other, and as a result, are free to focus on their areas of strength. "In a successful merger, you should ideally never have to look back at the merger documents," says Kupfer. A merger is a business partnership that thrives because of the ongoing synergy of the team.
Merging with another company provides the opportunity to increase market share and expand into new geographies and sectors. Joining forces with another enterprise can create innovation in advertising, distribution, and development. In every analytical exercise, one can point to benefits and risks. In my experience, getting beneficial business results via merger depends on a combination of brains, guts, and heart—qualities already inherent in today's entrepreneur.