Healthcare Due Diligence

Healthcare Due Diligence Brings a Sharper Focus

Healthcare reform has increased transaction activity as healthcare organizations, private equity groups, and other investors undertake mergers and acquisitions to gain market share and compete more effectively. This drives an increased focus on opportunities for synergies, integration, and other partnership activities.

High-Interest Sectors for Healthcare M&A Activity


Top M&A targets for Hospitals
Source: “M&A: Hospitals Take Control,” HealthLeaders Media Intelligence Unit, January 2012, p. 14, http://content.hcpro.com/pdf/content/275032.pdf

Increased transaction activity in today’s environment drives home the need for effective due diligence:

  • Healthcare organizations use a range of accounting approaches, making due diligence complex.
  • Analyzing operations and balance sheets, scrutinizing recurring EBITDA, and critiquing accounting and reporting infrastructure is very important.
  • Bridging historical performance to forecast results is more important than ever.
  • One-time costs associated with changes to operations and investments in technology must be considered carefully.
  • Market and commercial due diligence can provide insight into how vendors, customers, and patients will react to potential transactions.
  • Employers, potential targets, and portfolio companies will be affected by changes to employee benefits and hiring restrictions.
  • Reviewing the seller’s corporate compliance program to identify areas of fraud and abuse, including compliance with billing and coding regulations, is necessary.

How Crowe Can Help

Crowe Horwath LLP provides a focused and flexible approach to healthcare due diligence based on the needs of strategic buyers, private equity firms, and lenders.

We can help you:

  • Analyze value and detect weaknesses and strengths in financials, operations, and people and culture
  • Investigate assets, liabilities, capabilities, processes, and technologies
  • Gain insight to meet the timing, scope, and deliverables that are unique to each transaction

Healthcare Mergers and Acquisitions Expertise

Our mergers and acquisitions group has earned its reputation as a trusted resource to health organizations, private equity groups, and lenders for healthcare valuation and due diligence services.