Transaction Services

The market for health care mergers and acquisitions is active in several areas of the health care industry. The activity is driven by multiple factors such as network development to be ready for  looming bundled payment, financial struggles of smaller providers and changing physician employment trends. BKD has developed a comprehensive approach to help clients assess transaction targets and identify risks related to a proposed acquisition. We also can help entities considering selling their organization to implement a “sell-side” diligence plan to make sure you are ready to enter the market.

Health care transaction planning must address several industry-specific matters. Our health care experts work closely with the professionals of our transaction services team to help quickly identify and quantify issues and provide the solutions and insight needed before investing in another company.

In recent years, BKD has completed more than 60 due diligence engagements with a combined purchase price in excess of $1 billion. We can help your organization understand a target company’s strengths, weaknesses, potential risk areas and improvement opportunities.

Our flexible approach is tailored to the specific needs of each transaction. We can work with you to determine the appropriate scope of work, confirm the company’s value drivers and help reduce uncertainty.

Our typical focus areas include:

• Assessing the quality of earnings and cash flow
• Reviewing prior cost reports for errors and revenue opportunities
• Reviewing billing records for accuracy and potential compliance matters
• Comparing operating results to health care industry benchmarks
• Preparing or reviewing forecasts compared to historical results and trends in the industry
• Identifying asset and liability exposures
• Analyzing working capital to understand the impact on cash flows and to assist in setting working capital targets
• Analyzing historical and related future baseline and growth capital expenditures
• Identifying internal control weaknesses including observations on systems
• Identifying carve-out issues if part of a larger entity, including standalone and one-time integration costs
• Assessing departures from generally accepted accounting principles (GAAP)