Services Deployed
Quality of Earning
Coding & Clinical Compliance
Cybersecurity
Payer Black Box Analysis
Revenue Cycle Management
Centralized Project Management
Overview
Our Client is a highly acquisitive MSO with operations across seven states and seeking to continue its rapid add-on M&A activity across transactions of varying sizes from small solo practice tuck-ins to larger multi-site add-on acquisitions.
Our Client was aiming to improve its add-on diligence program to meet key objectives:
- Highly flexible diligence scope positioned to scale up and down to address varying add-on acquisition sizes
- User-friendly diligence experience for Client and Target teams
- Efficient third-party diligence pricing
- Value-add diligence findings that go beyond traditional “check-the-box” risk analysis
Execution
SCALE was engaged to provide an integrated diligence services across three simultaneous add-on transactions.
Unique aspects of SCALE execution approach:
Unique aspects of SCALE execution approach:
- SCALE deployed six diligence teams across three add-on transactions to provide a one-stop, integrated diligence solution.
- All diligence workstreams were centrally coordinated through SCALE’s project management team to streamline communications with Client and Target throughout the process.
- In addition to traditional diligence risk analysis, SCALE’s diligence teams incorporated post-close execution & integration preparedness analysis into the diligence reports.
- Coordinated with Client department leadership to sufficiently understand Client’s base operational program and post-close integration needs to support development of post-close integration plans customized to Client’s operational program.
Results
SCALE achieved meaningfully discounted third-party diligence cost relative to the traditional approach of working with disparate third-party vendors across individual diligence workstreams by providing bundled, repeat diligence services in addition to:
- Highly reliable, flexible and integrated one-stop diligence solution that could be scaled up and down to address a broad range of diligence needs across multiple simultaneous add-on transactions of varying sizes
- Rapid diligence execution with reliable, on-time delivery of diligence reports
- SCALE’s diligence team was able to develop a uniquely holistic view of Target for a third-party vendor by leading a broad range of diligence workstreams
- Delivered thoughtful diligence reports across six functional areas (i.e., coding, compliance, cybersecurity, revenue cycle management, payer black box analytics, and quality of earnings) that:
- Confirmed key transaction components, such as Target’s adjusted financial performance, to facilitate transaction execution
- Identified, quantified and stratified key risks
- Defined practical, value-add post-close operational performance improvement opportunities by functional area
- Developed initial framework for post-close integration + Improved Client and Target diligence process experience through:
- Centralized
- Process coordination across diligence workstreams
- Information requests to avoid duplicate requests across diligence workstreams
- Reduced burden on Client to manage the diligence workstreams by leveraging SCALE’s project management leadership
- Transparent and user-friendly status updates throughout diligence process