April 15, 2019 - ARM/RCM Issue:
Middle-Market M&A - Keys to Creating Maximum Deal Value: PwC-Mergermarket Survey

By: PwC
The pace of mergers and acquisitions continues at a steady clip, and with valuations and multiples still high, dealmakers face increasing pressure to deliver more value from each transaction. Yet achieving anticipated value remains a challenge for many deals.
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News You Can Use
 
How New Tax Law Limiting Deductions for Interest Expense Impacts M&A 
 
By:  Lewis Taub     
 
The new tax law that went into effect Jan. 1, 2018, has had a tremendous impact on business activities, including merger and acquisition (M&A) transactions. As businesses prepare to file their tax returns this year, they are just now quantifying how much the Tax Cuts and Jobs Act (TCJA) affects their bottom line.  

5 Reasons that Care in Preparing Projections for an Acquirer is Important
 
By:  Tom Edens 
  1. View to the Future - Even though TTM EBITDA and revenues (as well as the last five years) are keenly important to the Acquirer, they are buying the future and want indicators as to what the growth prospects are. They will reconcile the historical growth rate with projected growth rate.
  2. Earnouts - If an Earnout is part of the transaction structure, then the forward year or two projections is often used as a foundational basis to the Earnout structure.
  3. Sales Pipeline - The Acquirer will spend considerable time reconciling the projections with the sales pipeline. If there is not the proper ring of reconciliation, then the questions of which one is correct surfaces. 
  4. Historical Accuracy - The Acquirer will typically ask for the last several years projections and then perform a reconciliation with the actual numbers. This will provide an indication of the credibility of the projections provided by the Acquirer.
  5. CAPEX - By reviewing the income and cashflow projections, insight into future capital expenditure needed to support the revenue growth will be an important part of the economic attributes of the company.
ARM/RCM - Recent Industry Transactions
 
Date 
Acquirer 
Target 
Target Description 
April 2019
MetCredit (Metropolitan Credit Adjusters Ltd.) 
Acces Credit - Collection Agency Division 
Collection agency division of Quebec credit bureau 
Feb 2019  
Providence St. Jospeh Health 
Lumedic
Provides RCM platform based on blockchain technology   

About Us  

 
Marion Financial Corp. is a merger and acquisition advisory firm based in Houston, Texas.  Marion Financial has had an industry focus in the Accounts Receivable Management (ARM) and Revenue Cycle Management (RCM) sectors since 1995.
 

Tom Edens

President

713-988-8000 ext.111

edens@marionfinancial.com  

Marisa Fiorito

Director - Financial Analysis

713-988-8000 ext.114

fiorito@marionfinacial.com 
   
     
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M&A Transactions and settlements offered through McLean Securities, LLC, member FINRA/SIPC.