M&A in Healthcare

1. Introduction

Bahia Serviços de Saúde S.A. is a healthcare company based in Salvador, Bahia, with an annual revenue of R$ 150 million. It was acquired by Grupo Promédica, a prominent Health Group in the region, which includes a health plan operator, two hospitals, and several clinical centers and emergency units.

2.Acquisition Details

Grupo Promédica acquired a majority stake of 62% in Bahia Serviços de Saúde S.A. The primary objective of this acquisition was to vertically integrate the service network, thereby reducing operational costs and expanding the user base for its Health Plans.

The sell-side acquisition process was spearheaded by João Marcelo Alves as Bahia Serviços de Saúde S.A. CFO. His responsibilities included conducting due diligence, access business valuation, providing information to the buyer, supporting negotiations and reporting to the Board of Directors..


3. Post-Acquisition Activities

Following the acquisition's completion, João Marcelo Alves assumed responsibility for integrating operations and seeking operational synergies. He reported directly to the CFO of Grupo Promédica throughout this process.


4. Rationale for Acquisition

1. Vertical Integration: By acquiring Bahia Serviços de Saúde S.A., Grupo Promédica aimed to streamline its service offerings, leading to improved efficiency and cost savings.

2. Expanded User Base: The acquisition allowed Grupo Promédica to access a larger pool of potential customers for its Health Plans, enhancing its market reach and competitive advantage.

3. Operational Synergies: Integration efforts post-acquisition focused on leveraging synergies between the two entities, such as shared resources, standardized processes, and optimized workflows.


5. Benefits

- Cost Reduction: Vertical integration and operational synergies led to reduced operational costs for Grupo Promédica, contributing to improved profitability.

- Market Expansion: Access to a broader user base facilitated increased market penetration and revenue growth opportunities for Grupo Promédica's Health Plans.

- Enhanced Efficiency: Streamlined operations and standardized processes resulted in enhanced operational efficiency and service delivery.