Strategic growth: Transaction services

The challenge

Mergers and acquisitions (M&A). Divestitures. Initial public offerings (IPOs). Capital market activities. Joint ventures and other business relationships. These are all transactions that payers use to enhance their competitiveness. Increase their client base. Diversify product portfolios. Position themselves for growth. Such transactions can create enormous value for payers, but the deals are often complex, and missteps can be costly.

Today's struggling global economy favors acquisitions over divestitures. Mergers and acquisitions remain robust in the healthcare industry. It's a buyer's market. But capital is in short supply. There are fewer buyers. Lenders scrutinize deals closely, leading buyers to increase due diligence. Sales take longer. Prices are lower. Making deals is tougher.

Many payers see M&A as part of their growth strategies. That may soon change. New M&A tracking and reporting standards that took effect on January 1, 2009, will dramatically change the way companies negotiate and track accounts for mergers and acquisitions. Some of the changes will increase earnings volatility. Others may affect your organization's deal structures and acquisition strategy.

How we can help you

You need to approach mergers, acquisitions and divestitures cautiously and negotiate carefully. We can help you understand how new standards affect the M&A process, financial reporting and deal structures. We can help you determine whether a particular merger, acquisition or divestiture is financially advantageous to your organization.

Mutually advantageous deal making requires increased due diligence by both buyer and seller. Our dedicated, experienced deal professionals and industry specialists provide financial, tax and other due diligence services. We can help you develop strategies to mitigate risk and reduce dilution and volatility of earnings.

You should carefully plan post-deal integration of processes, technologies, facilities and corporate cultures. We've helped most of the Fortune 100 corporations and nearly all of the top 50 private equity firms with transactions. Our unique deal process and service model capabilities can provide seamless follow-through from M&A strategy advice and due diligence to M&A integration.

Common services include:

• Identifying potential synergies and cost savings
• Preparing for rigorous buyer due diligence
• Mitigating common reasons for loss in asset value, including disadvantageous transaction terms and pricing, and inadequate infrastructure planning for stranded costs
• Accounting, tax and financial reporting advice
• IPO and other capital raising services