Pre-LOI Due Diligence for Healthcare Organizations

Having the advantage of being closely involved in thousands of healthcare transactions each year, VMG Health is able to provide unmatched insight and market intelligence to our clients. Our professionals have the expertise to assist organizations with the detailed analyses and support to enable effective strategic decision making in the Pre-LOI (Letter of Intent) process.

Steps in the Process

Step 1: Quickly Acquire Data
By knowing which specific data sets and reports to ask for, VMG helps expedite the data procurement process. Customized information requests and data templates are shared with target company management to facilitate the process, resulting in quicker data turns to move targets through our clients screening process faster.

Step 2: Efficiently Analyze Data
Tailored financial models are built to meet our clients specific needs, which translates to time spent solely on getting the answers our clients require to make the best decisions.

Step 3: Benchmarking & Screening
VMG Health’s depth of knowledge and proprietary database of healthcare businesses allows for robust benchmarking and meaningful conclusions to be drawn. The identification of red flags or opportunities help clients prioritize only the acquisitions that are value accretive to their portfolio.

Recommended Next Steps

Step 4: Perform a Business Valuation
A business valuation is performed to provide our clients confidence in drafting a letter of intent and understanding how a particular business’ performance translates to its underlying value.

Step 5: Identify & Layer in Synergies
VMG helps identify duplicative costs to eliminate and can conduct a black box analysis to assess potential managed care reimbursement lifts to better understand the value proposition and potential return on investment.