Download the PDF and take this resource with you.
POST-ACUTE HOME HEALTHCARE LEADER CASE STUDY
Providing project management for multiple business combinations & post-acquisition audit support
Introduction
A fast-growing healthcare provider was aggressive on the M&A front, but its accounting team was getting stretched thin by the company's expanding acquisition and reporting demands. That's when it contacted Embark.
Our Solutions
Embark's M&A Activity, Accounting & Reporting, and Outsourcing & Team Continuity solutions were exactly what the company needed.
Index
The “Big Wins”
1. Guided four separate business integrations at once, each with different needs & starting at different times
2. Provided assistance on financial close processes, payroll, team continuity for audit support, & more
Executive summary
A leading post-acute home healthcare provider was in the process of completing a key merger and several smaller acquisitions when leadership decided the company needed additional bandwidth and expertise to manage these complex integrations, particularly across a segmented finance function with their hands already full with the day-to-day. Since Embark was already engaged in providing team continuity and various back-office accounting projects for the healthcare provider, their management expanded Embark’s role to provide guidance for their acquisition integrations.
About the client
With tens of thousands of qualified professionals across hundreds of locations, our home healthcare client encompasses several regional brands across the country – the PE-backed company services tens of thousands of patients per year.
On the heels of three previous acquisitions, a recent merger will make the combined entity one of the largest hospice providers in the US.
Challenges & objectives
After our client completed several recent, critical M&A transactions, management realized the company lacked sufficient bandwidth to effectively and efficiently manage the integrations. Further, our client’s CFO felt that the current bandwidth and tools available to the finance organization prevented the level of transparency required by executive management to effectively provide oversight of the integrations.Thus, the company asked Embark to expand an existing engagement to address critical needs and objectives around the recent transactions, including:
- Combine the integrations’ different roles and workflows into a cohesive, transparent process
- Reassign and consolidate certain integration functions
- Define and develop an integration playbook and tools
- Provide overall project management, working with the different teams within the accounting and finance functions – Treasury, GL, AP, Real Estate, and others – to ensure the people were involved and the activities were performed timely
- Identify roadblocks and escalate issues the appropriate decision-makers
- Identify interdepartmental tasks, processes, and roles to facilitate communication and ensure considerations are addressed
- Act as a conduit between the steering committee and executives, conveying critical information and insights into the integrations to keep leadership fully-apprised of progress
How Embark helped
Embark was able to successfully address each of our home healthcare client’s needs and objectives during the integrations by:
Project Management & Process Integration
-
Overseeing the mapping of the chart of accounts for the different companies and systems to efficiently roll-up the trial balances to our client for the month-end close
-
Assembling an overarching project plan to identify and guide the different tasks and roles necessary for the integration process, including each of the accounting functions
-
Providing guidance on subsequent acquisitions, both stock purchase and asset purchase transactions
-
Reviewing net working capital adjustment calculations, also ensuring they were timely performed and in compliance with the purchase agreement
-
Assessing the impact of the asset purchase and business purchase agreements, conveying that information to the CFO
-
Providing ongoing assistance, recommendations, and documentation to ensure a seamless hand-off of the many projects to a recently-hired Senior Director with integration experience
Accounting & Reporting
-
Migrating historical balances to provide their management with a clear picture of everything within the parent company’s system
-
Ensuring the different reporting processes for the integrated entities conform to our client’s existing procedures
-
Assisting in rolling out our client’s methodology and processes for financial reporting to the merged or acquired entities
-
Cleaning up fixed assets to ensure a smooth transition for acquisitions still coming onboard
-
Leveraging our deep US GAAP accounting bench strength to quickly answer accounting questions
Results: a solid foundation to build from
Ultimately, Embark guided four separate business integrations at once, each with different needs and starting at different times. This was in addition to the original engagement responsibilities covering team continuity issues and skill gaps in back-office accounting. Despite the many moving parts involved between separate teams and tasks across their accounting and finance functions, Embark left our client’s leadership with a solid foundation to build from, allowing the company to fully-leverage the benefits of its recent M&A activity.
Related resources
Post-Merger Integration Checklist
Our PMI Checklist helps ensure the many pieces involved in a merger fit together and form a more powerful, successful combined entity, covering essential topics like due diligence, communication, essential third parties, critical KPIs, and project management. For starters.
Buy-Side Due Diligence Report Checklist
Embark takes a concise but comprehensive approach to buy-side due diligence, helping ensure the resulting report leaves no stone unturned, uncovering insights into everything from reporting and employee matters to every relevant line item on the balance sheet.
The CFO's Roadmap to Finance Transformation
Embark’s roadmap is a step-by-step guide to building a more efficient, flexible, forward-looking finance department. Whether you’re new to digital transformation or a veteran, our insights will make the office of the CFO a better business partner to your entire organization.
Tell us what you need help with
All Embark solutions begin with a conversation. Fill out this form and one of our experts will follow up with a call. We can then better understand your needs and craft the right solution for your organization.