Chicago-based consulting firm Prism Healthcare Partners announced Wednesday that it would merge with Principle Valuation, a Chicago healthcare consulting and valuation firm.
The deal between the two privately owned firms will combine Prism's performance improvement efforts with Principle's valuation and advisory services. Financial details for the merger were not disclosed, but the companies expect the deal to close in January.
Together, the companies will have 150 full-time and contractor consultants; officials didn't give an exact number of clients but said it “numbers hundreds.” Several of the companies' clients overlap, but their services are complementary.
“We think that together we strengthen our market position and market presence,” Prism CEO David Shade said in an interview.
For now, the companies will retain their respective brands, according to Principle President Timothy Baker, but the companies could eventually use a tagline that makes their affiliation clear. Both companies' leaders noted that they don't want to lose their distinct identities.
Shade pointed to Principle's facility life practice as a particularly attractive business. That service involves accountants, architects and engineers who determine the remaining life of a healthcare organization's facilities and equipment as a way to better plan for future expenses.
“We can reduce the depreciation expense. It doesn't generate cash but it does increase the overall operating margins,” said George Whetsell, co-founder and managing partner at Prism.
Shade and Baker worked together previously at WellSpring Partners, which Shade founded. Prism and Principle have worked together on joint projects in the past, and ultimately decided that the two firms would complement one another, Shade said.
“This transaction is not driven by a need to bulk up, this transaction is driven by a need to have these capabilities for our clients,” Shade said.
