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Financial Solutions
Looking for a partner to increase profitability but don't know where to start?
TCG offers expert advice throughout the valuation process by conducting financial and operational reviews. We base the valuation upon standard industry approaches to accurately assess the information collected. Our experience includes developing organizational profiles to submit as a prospectus to potential buyers and conducting searches for potential buyers using a national database and the established partner profile criteria.
Will your community respond to the services you're providing?
We are capable of conducting feasibility studies to determine if your regional demographic will respond to a specific service. We set up a cost analysis to determine present cost to implement the service and future potential for profitability. Utilizing outcomes from the feasibility study, we can help you decide whether or not to launch the program.
Would you like your organization to be more profitable?
Skilled in analyzing financial infrastructures, TCG conducts a variety of evaluations from brief assessments of a billing department to in-depth reviews of all aspects of an organization's financial operations. Review of an organization's history entails the evaluation of Medicare cost report, financial statements and annual reports. We analyze the adaptability of the staff to modifying current policies and procedures to meet the demands of managed care contracts, capitated arrangements and the Medicare Prospective Payment System. We also prepare budget projections to maximize the client's financial strengths while minimizing any weaknesses.
Does your organization need assistance with a merger or acquisition?
TCG has a proven track record with mergers and acquisition work, and have successfully guided multiple organizations through the entire process of merging into one entity. From start to finish, we assist our clients in making effectual decisions that support the organization and culture.
Identifying a specific set of selection criteria is essential for making preliminary decisions about the potential for a merger or acquisition. TCG is there, side-by-side, working with our client to ensure the best possible outcomes by instructing and advising key board and management staff in the elements of the negotiation process.
Has a vacancy in your top-level management team slowed operations down?
TCG can place skilled individuals into critical transitional management positions such as Chief Executive Officer, Chief Operating Officer, Chief Financial Officer and Executive Director. Our Associates have the experience and knowledge to make critical day-to-day decisions about top-level management that will keep your organization moving forward.
Mergers and Acquisitions – Case History
Situation:
To achieve vertical integration of services and enhance strategic position in the marketplace, a regional health system sought to purchase a home care agency. Increased competition from a fully integrated health system in the area intensified the need to acquire a home care company more quickly. The organization required expert assistance to identify the most appropriate home care company and complete the acquisition in order to meet the demand for providing multiple services to managed care organizations and to capture home care revenues that were going outside the system.
Strategies:
The Corridor Group was retained to ensure a seamless transaction and integration process as the home care company was acquired by the regional health system. Strategies employed by TCG included:
- Evaluating potential acquisition candidates according to the health system's criteria.
- Qualifying and solidifying actual acquisition candidates.
- Selecting the most appropriate company for acquisition.
- Performing due diligence of the selected company.
- Presenting a valuation of the home care company.
- Assisting in structuring the transaction.
- Providing assistance with integration of the acquisition into the health system.
Tactics:
The Corridor Group first spent time learning about the health system's market position and competitive environment in which it operated. Based on the findings, the health system and TCG then developed specific criteria for the selection of home care companies to be considered. TCG then applied these criteria to qualified candidates and determined the home care company that was the most appropriate match for the health system.
A formal, due diligence procedure was conducted by The Corridor Group to provide the health system with a thorough and objective assessment of the company to be acquired. This evaluation included detailed financial projections based on new reimbursement methodologies, as well as specialized operational due diligence. In addition, TCG brought in a certified public accountant with accreditation in business valuations and home care experience to perform the valuation of the home care company.
Utilizing this essential information, TCG was able to assist the health system in structuring the acquisition transaction and developed a detailed integration plan to incorporate the home care company into the organization.
Results:
By combining careful due diligence, expert valuation and extensive experience in the health and home care industry, The Corridor Group enabled the health system to:
- Decrease financial and operational risks.
- Complete the acquisition transaction and begin integration within 120 days of retaining The Corridor Group.
- Achieve a 20% increase in market share within two years.
- Capitalize The Corridor Group's due diligence fees as outsourced development costs.
In addition, the health system realized a 25 % return on its investment (including the cost of purchasing the home care company and TCG's consulting fees) within two years.