Colin McDermott, CFA, CPA/ABV
Managing Director
Valuation & Transaction Advisory
Dallas
Colin McDermott is a Managing Director with VMG Health and is based in the Dallas office. McDermott leads a team of professionals performing fair market value studies, fairness opinions, and fair value analyses used for financial reporting, financial advisory services, and management consulting. McDermott has particular valuation experience with health plans, hospital systems, ambulatory surgery centers, pharmacies, imaging centers, laboratories, home health and hospice agencies, and physician groups.
Additionally, McDermott often serves as a trusted financial advisor to clients and provides strategic advisory services as they contemplate a transaction. In this capacity, his experience includes financial advisory on behalf of buyer or seller, preliminary due diligence and support for evaluating transaction opportunities, merger or acquisition financial integration, divestiture planning, and feasibility or research studies.
McDermott frequently presents at industry conferences and publishes on healthcare and valuation-specific issues. He is also a contributor to VMG Health’s blog and healthcare valuation insights. McDermott serves on the planning committee for the AICPA Healthcare Industry Conference.
Prior to joining VMG Health, McDermott was Director in the Forensic and Litigation Consulting Group of FTI Consulting, Inc. and was an associate in KPMG’s Forensic and Litigation Consulting Group. In those roles, McDermott provided valuation and advisory services to firms in various industries, including healthcare, manufacturing, energy, and telecommunications.
McDermott received a Bachelor of Business Administration in Accounting and a Master of Science in Finance from Texas A&M University. He is a licensed Certified Public Accountant (CPA) in the state of Texas and holds both the Chartered Financial Analyst (CFA) and Accredited in Business Valuation (ABV) designations.
- Certified Public Accountant (CPA)
- Chartered Financial Analyst (CFA)
- Accredited in Business Valuation (ABV)
- CFA Institute
- American Institute of Certified Public Accountants
- American Health Lawyers Association, Vice Chair of Publishing for the Tax and Finance Practice group
- Presentation: “Tackling Service Line Strategies: Physician Alignment and Strategic Positioning” – Becker’s CEO + CFO Virtual Forum, June 13, 2023
- Webinar: “Emerging Dynamics in Physician Transactions: Health Systems and Private Equity—Competitors or Partners?” – American Health Law Association, November 17, 2022
- Presentation: “State of Hospital M&A: Trends Behind the Surge and Risks to Getting Deals Done” – Hospitals & Health Systems Innovation Summit 2022, October 22, 2022
- Webinar: “Prepare Your Health System for New Challenges: Lessons From Three Health Systems” – Becker’s Healthcare, October 17, 2023
- Presentation: “The Business of Primary Care; Valuing Primary Care Practices” – National Primary Care Transformation Summit, July 27, 2022
- Webinar: “Physician Transactions: Competition and Market Dynamics” – American Bar Association, April 19, 2022
- Presentation: “Getting Private Equity and Hospital Physician Deals Done During the Pandemic and Beyond…” – UT Law CLE’s 33rd Annual Health Law Conference, April 8, 2022
- Presentation: “Caution! Health Systems Face Evolving Competition for Physicians” – The Healthcare Roundtable
- Panel: “Leadership, Mergers and Acquisitions: What We’ve Learned so Far” – Becker’s 9th Annual CEO + CFO Roundtable 2021
- Presentation: ” Physician Transactions – Competition, Compensation & COVID” – ABA Health Law Section 22nd Emerging Issues in Healthcare Law Virtual Conference
- Presentation: “A Growing Dynamic: Private Equity Transactions Pre- and Post-COVID Issues” – ABA PLI 2020 Healthcare Delivery & Innovation Conference
- Presentation: “Private Equity & Health System Acquisitions of Medical Groups” – AICPA Health Care Industry Conference 2019
- Presentation: “Distressed? A Conversation with Hospital Industry Executives” – AICPA Health Care Industry Conference 2019
- Presentation: “Private Equity & Health System Acquisitions of Medical Groups” – ABA Physicians Legal Issues Conference 2019
- Presentation: “Physician Transactions: An Insider Perspective” – AICPA Health Care Industry Conference 2018
- Presentation: “Post-Acute Joint Ventures: Market Overview and Case Study” – AICPA Health Care Industry Conference 2018
- Moderator: “CFO Panel” – AICPA 2017
- Presentation: “Not-for-Profit and For-Profit Joint Ventures” – AICPA 2017
- Presentation: “Understanding Alternative Payment Models and Related Regulatory Issues” American Bar Association Washington Health Law Summit
- Presentation: “Introduction to Free-Standing Emergency Rooms” – AICPA Healthcare Industry Conference 2016
- Presentation: “Health Care Consolidation: A Review of Recent Trends and Transactions” – AICPA Healthcare Industry Conference 2016
- Presentation: “From Foe to Friend: Healthcare Consolidation and Evolving Alliances Between Payors and Providers” – ACC Annual Meeting 2016
- Presentation: “Hospital Joint Venture Trends and Post-Transaction Compensation Considerations” Becker’s Hospital Review 7th Annual Meeting
- Presentation: “Payor Provider Convergence: A Review of Current Trends, Deal Structures, and Issues to Consider” – ABA Health Law 17th Annual Emerging Issues in Healthcare Law
- Presentation: “Business Combinations – Understanding Issues Unique to Healthcare Providers” – AICPA 2015 Healthcare Industry Conference
- Presentation: Payor Provider Joint Ventures – Understanding Structure and Valuation Issues” – AICPA 2015 Healthcare Industry Conference
- Presentation: “Health System Transactions & Joint Ventures: Current Trends in the Market and Deal Structures” – 2015 AHLA Healthcare Transactions Conference
- Presentation: “Health System Transactions and Joint Ventures: Overview of the Market and a Description of the Deals/Structures” – Becker’s Hospital Review 5th Annual Meeting
- Presentation: “Hospital and Other Health Care Service Company Valuations” – AICPA 2014 Healthcare Industry Conference
- Presentation: “Key Trends in Valuing Practice Acquisitions” – Becker’s Hospital Review 4th Annual Meeting
- Panel Discussion: “Business & Transactions Interest Group” – ABA 14th annual Conference on Emerging Issues in Healthcare Law
- Presentation: “Reading the Tea Leaves – Assessing ASC Valuation Trends Utilizing the Latest Industry Data” – Becker’s Orthopedic, Spine and Pain Management-Driven ASC Conference
- Presentation: “Valuation Primer – Physician Practice Acquisitions & Physician Service Agreements” – Third Annual Health Law Symposium – Indiana State Bar Association Health Law Section
- Lead a team of multi-disciplinary professionals to assist a multi-state not-for-profit health system with the evaluation of a prospective transaction involving a community hospital. Specifically, the VMG team conducted financial due diligence, valuation, managed care “black box”, and coding compliance. VMG delivered results to executive leadership which provided the client with critical information to determine transaction outcome.
- Retained by the board of directors of a large independent physician association, related physician group, and management services organization to provide a fairness opinion to support the board with transaction approval. Assisted not-for-profit health system and for-profit specialty operator with fair market value opinions to establish joint venture ownership in a newly formed radiology business. Addressed critical assumptions including impact on health system’s contribution related to site of service differential.
- Provided consulting services to a full-service real estate development firm as it evaluated development opportunities for inpatient rehabilitation services. The VMG team identified markets based on criteria which included demographics, bed need assessment, payor and competitive environment, and local health system dynamics.
- Lead a team of multi-disciplinary professionals to performed a fair value analysis to support of Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Codification (“ASC”) 958 Not-for-Profit Entities (“ASC 958”) and ASC 805, Business Combinations (“ASC 805”) on behalf of large multi-state not-for-profit health system. Specifically, the target had operating revenue in excess of $6.0. Assets valued included the real estate (14 hospital campuses), personal property (including site visit and limited verification of major assets), and intangible assets.
- Provided financial advisory services to a health system with $4.3 b of operating revenue as it completed a merger with a health system with $2.6 b of operating revenue. Specifically, performed financial integration modeling and certain due diligence functions. Successfully lead direct interactions with executives to develop the presentation used by the Board of Directors to approve financial merits of the merger.
- Assisted with preliminary due diligence on a distressed academic medical center. Specifically, performed a detailed historical review of restructuring initiatives including assessment of relationship with affiliated medical school. Evaluated additional opportunities for improvement using industry benchmarks and developed a multi-year pro forma to assist with decision making as client contemplated a financial investment.
- Retained to provide expert advisory and fair market value services on behalf of a state Attorney General Office (“AG”) as the AG reviewed the sale of not-for-profit assets. Specially, served as an expert on review of a sale of an acute care hospital and addressed specific questions and requests from the AG.
- Provided strategic planning and consulting services to a large physician group as it contemplated go-forward strategy including pursuing organic growth in local market, acquisition of smaller groups in complementary markets, or soliciting investment by a private equity partner.
- Determined fair market value of five acute care hospitals to be contributed into a joint venture between a not-for-profit and for-profit health system. The valuation opinion was utilized to establish joint venture ownership. Worked with representatives from each organization to understand health value drivers. Created detailed valuation reports and executive summary which outlined key findings. Presented findings to the leadership of both organizations. The transaction was finalized and the valuation opinion was relied upon.
- Provided a fairness opinion to a State AG office as it reviewed the sale of a not-for-profit managed Medicaid insurance plan. Presented findings to the Assistant Attorney General and their team. Ultimately, the opinion was relied upon and the sale was approved.
- Determined fair market value of home health and hospice agencies which were contributed to joint venture between two for-profit organizations. The valuation opinion was utilized to establish joint venture ownership. The transaction was finalized and the valuation opinion was relied upon.
