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LEADING HOME HEALTHCARE PROVIDER CASE STUDY
Overcame accounting & finance obstacles to become a mid-market powerhouse in the competitive home healthcare industry
Introduction
In the wake of a complex, PE-backed, three-way merger, a major healthcare provider faced key talent gaps, segmented systems, and disjointed accounting processes, policies, and procedures. The company needed help in a hurry and called Embark to save the day.
Our Solutions
Embark's M&A Activity, Outsourcing & Team Continuity, Accounting & Reporting, and Office of the CFO services were exactly what the company needed to get its accounting on track.
Index
The “Big Wins”
1. Assisted in the centralization of our client’s accounting function, providing a solid foundation for the complex merger that nearly doubled the size of the entity
2. Consolidated accounting processes allowed our client to essentially cut necessary accounting labor hours in half
Executive summary
After a PE-backed three-way merger, our home healthcare client quickly faced loss of key talent as well as segmented systems, reporting, and procedures between the previously separate entities. Embark provided critical accounting team continuity and centralized the accounting function to help make our client a dominant force in the industry.
About the client
Our client is one of the United States’ largest home healthcare providers, with a growing footprint across the country. They have over 30,000 caregivers serving tens of thousands of patients.
Challenges & objectives
Our client hired a new CAO shortly after completing the merger. In addition, one of the controllers from the previous entities gave notice, exacerbating already significant skill and knowledge gaps across the accounting function. As a result, the new CAO immediately faced many challenges in shoring up the company’s accounting, driving a number of immediate objectives:
- Accounting team continuity in key areas, particularly controller & accounting manager roles
- Ensure all acquisition accounting was in good order
- Centralize & streamline the reporting function across the new business entity
- Evaluate revenue recognition procedures according to ASC 606 guidance
- Gauge the financial reporting of the company’s accounts receivable, along with other key accounting areas
How Embark helped
This home healthcare company engaged Embark early in the transition, just after the new CAO started. Although our immediate role was to provide continuity in the critical controller and accounting manager positions, the CAO also wanted our consultants to address the company’s pressing accounting objectives.
Embark was also able to guide the company’s accounting function through this critical period, all with minimal disruption to operations:
- Documented the day-to-day operations and policies for each of the three entities
- Ensured the new company adhered to the many complex, state-specific accounting regulations in their newly-expanded footprint
- Leveraged our Big 4 experience to create numerous accounting memos that formally documented and aligned various accounting policies
- Transferred all of our documentation to the client's HQ to help create a more unified, centralized accounting function
Our client was so satisfied with our initial engagement, the company continued using Embark’s services for ongoing needs throughout the merger transition, including:
- Serving as a knowledge bank for the three entities that the merged company relied on during and after the transition
- Training home office accounting personnel on combining the processes of the three merged companies into a single, streamlined accounting function
- Handling all data validation and mapping for new system implementation
- Documenting all processes and procedures, identifying areas for improvement and triaging them when necessary
- Reconciling its balance sheet accounts post-system implementation
- Providing guidance and helping align the three companies into a single new ERP system
- Facilitating the first-year audit by leading external reporting and handling all communication with the auditors
Results: a bright future for the client
As a result of our work, the company was able to leverage its expanded operations directly into market share based on reliable, accurate, and compliant accounting. They are already one of the largest home healthcare providers in the country, and has its sights set on even greater market share and expanded services. At Embark, we’re proud to help our partners reach their potential, using our Big 4-based experience to help them thrive.
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