In Episode 6 of the M&A Healthcare Insights podcast, Andre Ulloa and Doug Walters continue their discussion on the importance of partnering with a CPA who has extensive healthcare industry expertise to help prepare financial reporting and build trust between the seller and buyer.
In the first part of Andre Ulloa’s conversation with CPA Doug Walters, they discussed the complex regulations and compliance requirements in the healthcare industry and the benefits of having a CPA who specializes in healthcare. In this second installment of Andre’s interview with Doug Walters, Doug shares the value of partnering with a CPA with healthcare-specific experience prior to and during a due diligence period when you need accurate data and reporting. The insight continues into post-closing considerations, to ensure healthcare clients are maximizing opportunities with regard to tax liability.
Clean financials and their preparation are crucial in M&A transactions. Just like presenting a well-typed professional resume trumps a handwritten one, professionally prepared financial statements inspire trust. Trust is the key; once lost, the deal is lost. Financial statements, particularly the profit and loss (P&L) statement and balance sheet, serve as the backbone of the offering materials, like the Confidential Information Memorandum (CIM). These materials often comprise the first impression of a business, and presenting a clear and accurate picture is vital. Financials are not just about presenting a financial resume for a business, but provides a solid foundation to respond to offers and negotiate effectively.
> Continue on to Part Three of Andre’s interview with Doug, here.
If you missed it, be sure to catch up with Part 1 of Understanding Transactional Accounting with Doug Walters.
Be sure to subscribe to the M&A Healthcare Insights podcast on Apple Podcasts.
