Colin McDermott - CFA, CPA/ABV
Managing DirectorBusiness Valuation & Transaction Advisory
Colin McDermott, CFA, CPA/ABV is a managing director with VMG Health and is based in the Dallas office. Colin leads a team of professionals performing fair market value studies, fairness opinions, fair value analyses used for financial reporting, financial advisory services and management consulting. Colin has particular valuation experience with health plans, hospitals systems, ambulatory surgery centers, pharmacies, imaging centers, laboratories, home health and hospice agencies, and physician groups.
Additionally, Colin 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.
Colin frequently presents at industry conferences and publishes on health care and valuation specific issues and is a contributor to VMG Health’s blog and healthcare valuation insights. Colin serves on the planning committee for the AICPA Healthcare Industry Conference.
Prior to joining VMG Health, Colin 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, Colin provided valuation and advisory services to firms in various industries, including healthcare, manufacturing, energy, and telecommunications.
Colin received a Bachelor of Business Administration in Accounting and a Master of Science in Finance from Texas A&M University and 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.
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
- 4 Major Themes from Public Healthcare Firms during COVID-19 – Part 2: Cost Reduction
- 4 Major Themes from Public Healthcare Firms during COVID-19 – Part 1: Patient Volume
- Alignment Opportunities with Independent Physicians Due to COVID-19
- Home Health Business: Market Dynamics & Future Opportunity
- Understanding Alternative Payment Models and Related Regulatory Issues
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- 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.
- 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.