Supporting the Sale Process for a Physician Group
With accurate financials, the company was successfully sold to an established private equity firm.
A gastroenterology group founded by former Mayo Clinic physicians spun off from a larger network to become an independent company. To support the new business, the company needed to build standalone back-office functions, including accounting and finance. Concurrent to the functional build out, the company’s owners were pursuing a sale of the business and engaged an investment bank to assist with it. Due to the gaps created by the recent separation, the company needed to prepare its financial information to support the sale of the business.
How we helped
Riveron was engaged to compile the company’s books and records and conduct a quality of earnings analysis for use in the sale process. As a result of the spin-off, there were specific challenges that had to be overcome, including consolidating multiple instances of QuickBooks with dissimilar charts of accounts and deciphering historical data without context from the former accounting team. Additionally, the company’s cash-based accounting had to be converted to an accrual basis, which necessitated detailed quality of revenue analyses using data from four separate practice management systems. Working across parties, including the company and its tax accountants, we generated fully consolidated, accrual-based financials that were provided to potential investors groups. As the sale process continued, we assisted with reviewing the sales purchase agreement and negotiations over closing net working capital.
With accurate financials, the company was successfully sold to an established private equity firm. The additional capital enabled the business to expand its network, advance its services and technology, and make an even stronger impact on underserved areas where patients need this type of expert care.