The M&A "Hidden Dividend": Your Biggest Post-Acquisition Alpha

In most acquisitions, benefits are the second-largest expense after payroll. While you’re grinding for 2% operational efficiencies, your target is likely leaking 30% to 50% of its healthcare spend to "integrated" middlemen and "black box" PBMs. For a struggling company, this isn't just a cost—it’s the difference between being in the red and being cash-flow positive. The Investor's Play: The Leak: Middle-market CEOs often treat healthcare as an "uncontrollable" utility. The Capture: By stripping out "spread pricing" and hidden broker commissions, you can drop 7-figure sums directly to the bottom line on Day 1. The Valuation: Reducing benefits spend by 50% doesn't just save cash; it re-values the entire company. Stop looking for "synergies" in the breakroom. Fix the healthcare supply chain and unlock the trapped profit. #MA #PrivateEquity #EBITDA #BusinessTurnaround #HealthRosetta