November 15, 2018 - ARM/RCM Issue:
Middle-Market M&A:  It's been a good year for M&A. Will momentum continue post election?

By: Mary Kathleen Flynn
U.S. middle-market dealmaking in the first three quarters of 2018 surpassed the same period in 2017, according to PitchBook. If the pace continues in the fourth quarter, middle-market deal value may surpass $400 billion for the first time ever.

News You Can Use
Too Much Customer Concentration at the Top Can Ding Your Value in an Acquisition   
By:  John Wagner   
Let's say you were doing business with just one or two very large customers. Your business could, quite rightly, be categorized as overly dependent on too few sources of income. The reason is simple:  Any move that those two customers made, good or bad, up or down, would cause an equal reaction in the fortunes of your company, good or bad, up or down.

5 Situations That Could Delay a Transaction Closing
By:  Tom Edens 
  1. Data Preparedness - The seller's team has not adequately prepared for the avalanche of data requests by the acquirer.
  2. Accounting Irregularities - The acquirer's DD team has difficulty reconciling the financial information previously provided to them with their detailed scrutiny of the books and records.
  3. Loss of Client - The untimely loss of a material client during the due diligence period will often generate very tough conversations with the acquirer and shareholder.
  4. Untimely Responsiveness - The seller's team not keeping up with the non-stop requests for meetings/calls or data inquiries and is generally slow in their responses.
  5. Acquirer's Finances Stall - If the original party who earlier indicated would finance a material part of the leverage component has an unfavorable change in commitment, then the acquirer has to go back to debt market for replacement financing partner.
ARM/RCM - Recent Industry Transactions
Target Description 
August 2018
Access Healthcare 
Pacific BPO 
Provider of revenue cycle management services  
 Sept 2018
OSG Billing Services 
Applied Revenue Analytics 
Improves revenue cycle performance of denial claims 
Sept 2018
Healthcare technology solutions that provide insight into financial outcomes 
Oct 2018 
Convergys (NYSE: CVG) 
Provides customer experience outsourcing 
Oct 2018 
Genex Services 
Priority Care Solutions (Century Equity Partners) 
Provides managed care services and network provider for workers' compensation industry   
Oct 2018 
Teleperformance (Paris: TEP) 
Intelenet  Business process solutions company 
Oct 2018 
Pine Tree Equity 
RevMD Partners 
Provider of revenue cycle management services  
Oct 2018
Maximus (NYSE: MMS)
General Dynamics (NYSE: GD) - Citizen Contact and Call Center Business. 
Call center business 
Nov 2018 
Eir Partners  Millennia Patient Services 
Provider of technology-enabled revenue cycle management

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


713-988-8000 ext.111  

Marisa Fiorito

Director - Financial Analysis

713-988-8000 ext.114 

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