Overview

A fast-growing private equity-owned firm in the Durable Medical Equipment (DME) market segment was seeking to expand its market share through the acquisition of a large competitor. CWH Advisors was engaged to support comprehensive diligence on the target acquisition and present an in-depth understanding of the adjacent market segments they would be entering.

Challenge

• In a compressed time frame, gain a comprehensive understanding of new markets, new products and a business that was underperforming financially
• Identify and quantify opportunities for operational adjustments to each line of business
• Equip the acquirer with the necessary information to make a well-informed go/no-go decision on a major company acquisition
• Provide insights as to how to turn the business profitable

CWH Approach

We assembled a team of subject matter experts that had prior operating experiences in business segments that were being investigated. Our team worked as an extension of the clients M&A team to provide insights and quantitative analyses that paved the way for a smart, well-informed decision. Specifically, our team:

• Conducted extensive market analysis on each market segment that expanded the acquirer’s target market
• Engaged in obtaining an in-depth understanding of the operational, financial and personnel performance of the target business
• Acquired, analyzed and synthesized extensive claims data to support, inform and validate our recommendations
• Completed an extensive review and prepare observations, recommendations and execution planning outline leveraging team expertise and outside experts

Actionable Results

• Prepared observations, recommendations and execution planning outline

• Delivered a fully-validated, well-documented recommendation that was used by the executive leadership team in their recommendations to the board
• CWH Advisors provided the information needed to facilitate a winning transaction and a playbook that outlined a path to profitability post-acquisition.‍

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