In our M&A practice we strive to align the right buyer with the seller and combine that with the appropriate deal structure. If we can do that while keeping the deal process flowing in a smooth and positive way, the outcome can be rewarding for both buyer and seller. PER-SE Technologies, one of the largest healthcare information technology and business services companies recently completed the acquisition of Flexestaff, a Web based staffing, scheduling, and shift bidding software company.

PER-SE's Hospital Resource Management Solutions division provides a workforce management solution. That solution is installed in approximately 1100 hospitals. Flexestaff, on the other hand, was a two-year-old company with a cutting edge, high value solution, and a limited install base. The founders made one of the most difficult decisions that Entrepreneurs can make - to no longer go it alone.

Several factors contributed to this decision. First, the market discovered the value of this solution and several large players were beginning to focus resources on this space. A race for market share was beginning. Hospitals are generally risk adverse in their IT decision making - preferring an enterprise giant to an edgy start-up. That fact had Flexestaff stuck between the early adapters and broad market acceptance. After some encouraging initial success, the sales cycle began to lengthen.

Integration Risk - Another sales inhibitor was the customer's desire for this product to integrate with their existing resource management system. With scarce resources, that became a major hurdle for this young company. The founders used objective situational analysis and made the difficult, but correct decision to seek a strategic buyer.

Enter PER-SE Technologies. PER-SE was involved in a systems enhancement effort and their clients were responding favorably. Prior to this effort, product updates had lagged, limiting new account activity. This acquisition sent a clear message to the marketplace - we are committed to providing the best IT tools available and will acquire them when necessary. The sales force now has a new exciting product to offer to their installed accounts. They also have injected new energy into their prospecting efforts.

PER-SE management made a critical decision to buy rather than build. This is an enlightened attitude and in this case should pay huge dividends. Many large technology companies eliminate this key successful strategy by invoking the