Supporting Strategic Shift and Merger Integration
The Situation
A leading US-based Management Services Organization (MSO) planned to acquire the practices of approximately 900 physicians and transition from an MSO model to a provider model. Critical success factors for the conversion were to ensure a smooth transition for each of the practices, significantly enhance their FP&A and reporting processes, and standardize their accounting polices across each of the physician practices. Our Accordion team was brought in to provide guidance within the role of CFO throughout the transition executing upon FP&A and financial accounting initiatives.
Services
Merger Integration Planning & Execution
M&A Execution Support
Financial Statement Preparation & Analysis
The Execution
We assisted the Company through its transition by focusing on three key areas:
Revenue Recognition
Worked closely with finance and treasury departments and each of the practices to transition each practice from a cash-based revenue recognition policy to accrual-based.
Malpractice Accounting
Consolidated the malpractice insurance of each of the practices to reduce cost.
Acquisition Integration
Developed, in close conjunction with management, a consolidated budget. Identified and documented necessary reporting to provide to each practice. Structured the post-acquisition balance sheet of the Company for the additional accruals as a result of the transactions. Documented all relevant finance and accounting integration procedures including the month-end close process.
The Results
Accordion’s support and guidance through the preliminary transactions allowed for a seamless transition for the Company and the initial group of practices. In fact, the Company was so impressed with the result that they retained our team to support the remaining transactions. Additionally, the budget provided both Company management and partners within the practices with clear benchmarks on which to set annual compensation targets.