- While at Harvard Medical School, Lissy Hu noticed a evident drawback in healthcare she might repair.
- She created CarePort Health, a community that helps well being professionals coordinate care, observe, and handle sufferers.
- In the final 5 years, her company has been acquired twice — by Allscripts in 2016 and WellSky in December, for $1.35 billion.
- Visit the Business part of Insider for extra tales.
Lissy Hu considers herself an unintended tech entrepreneur.
She was attending Harvard Medical School, with the hope of turning into a health care provider after commencement, when she noticed a evident drawback in healthcare: Many sufferers want extra care after leaving the hospital, corresponding to at-home companies or stints at nursing houses. However, there was a disconnect between the events making an attempt to manage these efforts, leaving sufferers and not using a clear restoration plan.
“I wanted to build technology that could address this because I had seen technology work in other areas of our daily life, like restaurants and hotels,” stated Hu, founder and CEO of CarePort Health, a care coordination community that helps well being professionals observe and handle sufferers. “This was an area where technology could solve the problem.”
Hu launched CarePort Health in 2012 and, within the final 5 years, her company has been acquired twice — by healthcare IT agency Allscripts in 2016 and well being care software program maker WellSky in December. CarePort’s newest acquisition was for $1.35 billion and phrases of the sooner deal weren’t publicly disclosed.
Hu instructed Insider how entrepreneurs can efficiently place their corporations to be acquired.
Commit to serving your prospects from Day 1 — even when weighing an acquisition
It does not harm to dream large, however do not begin a enterprise with the intention of getting acquired, Hu stated. “Starting a company is like getting married, in the type of commitment you’re making,” she added. “It’s very odd to think there’s going to be some expiration date.”
Focus as a substitute on constructing a company that serves for your prospects, Hu recommends. Holding onto your love of the enterprise, its shoppers, and the issue you are making an attempt to resolve will open extra alternatives down the highway.
When weighing an acquisition, select what’s finest for the enterprise, Hu stated. Entrepreneurs ought to ask themselves, would a brand new proprietor profit my prospects and be strategic for the company?
Discussions about CarePort’s first acquisition with Allscripts began when Hu heard prospects had been utilizing each platforms for their care administration. Clients requested if it was attainable to combine the techniques in order that they did not have to add the identical data and paperwork twice.
When Hu began integration discussions with Allscripts, she wasn’t contemplating an acquisition: She was making an attempt to ease a ache level for prospects and see if a partnership can be strategic for her enterprise.
“I saw that there were so many benefits for our customers in bringing the two products together,” Hu stated. “Ultimately, it was going to help us win the market.”
Do your homework on the company that desires to purchase you
Once the opportunity of an acquisition is on the desk, entrepreneurs ought to study what they’ll about their future companion, Hu stated. Start by getting to know the individuals you would be working with, what these people consider your product, and your technique, she added. Those elements might be necessary sooner or later success of the partnership.
Additionally, look into whether or not the company cultures will jive and if the 2 groups will work effectively collectively, Hu stated. “You’ve got to do that reverse diligence if you’re intent on figuring out if this is the right home for your company,” she stated. “You have to want to work with the people who are buying you.”
How to decide a good acquisition value
When figuring out your sale value, think about elements corresponding to demand for your enterprise, how a lot cash you have raised, what your company booked in income, and variety of prospects, Hu stated. Those elements will command a sure value.
While venture-backed corporations might have added stress to web sure returns, Hu suggests all entrepreneurs seek the advice of their board of advisors when establishing a value vary. They’ll information you on different components to think about when hanging a value.
Prepare for an adjustment interval following the deal
After the deal is finished, brace for a interval of ambiguity as the 2 corporations merge and discover a new working relationship, Hu stated. Prepare your workforce for that uncertainty and know it is a regular a part of the method, she added.
“It’s a little bit of a leap of faith in terms of whether it’s going to work out or not,” Hu stated. “You have to trust that this is the right thing for the customers and your team.”