Financial Due Diligence
HMP’s financial due diligence is provided by a team of experienced healthcare executives who analyze quality of earnings and working capital requirements through financial statements, patient mix and market placement and on-site discussions with medical staff, management and board members. Our focused and tailored approach enables us to rapidly identify and understand potential deal breakers, value drivers and other areas of interest specific to our clients. We perform both buy-side and sell-side due diligence.
Our financial due diligence services include:
- Assessment of the target provider’s quality of earnings, including the identification of overly aggressive accounting policies and the assessment of the adequacy of third-party contractual allowances, as well as GAAP accounting
- Analysis of the cash flow revenue cycle (e.g., working capital changes, capital expenditures, etc.)
- Review of on- and off-balance sheet assets and liabilities, including significant operating lease obligations
- Use of our proprietary financial modeling and data analysis tools to assess market position, payor mix to specifically identify market opportunities as well as trends in profitability and significant concentrations of risk
- Evaluation of management’s financial projections and business plans
- Comprehensive discussion with management and their advisors
- Performance of both buy-side and sell-side due diligence