The Due Diligence Tightrope: Getting the Right Deal Done

To achieve long-term financial viability and ensure continued provision of high quality care in a dynamic, increasingly consolidated environment, hospitals, health systems, physician enterprises, and other provider organizations are faced with the need to consider new opportunities to align, merge, grow by acquisition, or otherwise expand or diversify. Realizing the benefits of a merger or other transaction, however, requires that both parties successfully evaluate, structure, and negotiate the transaction prior to execution. When effectively executed, the post-LOI due diligence period should provide the insight needed to affirm the deal decision, refine deal terms, and lay the groundwork for integration.

Through case studies and illustrative real-life examples, this presentation will explore strategies for:

• Leading a transaction-specific due diligence process
• Avoiding information overload when gathering data, and responding appropriately when the potential partner cannot or will not provide information
• Maintaining deal momentum when significant issues are identified early in the due diligence process
• Understanding your potential partner’s financial performance and position, and ultimately considering the likely post-transaction financial picture, including pressure-testing assumptions, exploring scenarios, and keeping eyes wide open on whether your capital commitments make sense
• Leveraging the due diligence process to begin building a foundation for integration
• Connecting potential risks across silos when considering the overall due diligence outcome