September 15, 2019 - ARM/RCM Issue:
Middle-Market M&A - Can the good times last? Four factors shaping M&A in the second half of 2019

By: John Reiss and Gregory Pryor
Positive drivers of M&A, including the strength of the US economy, the availability of financing and the strategic imperative to consolidate or transform for many corporates have underpinned transactions.

News You Can Use
How Buyers Evaluate Risk: Due Diligence 101 
By:  Axial      
Buying a business is a complex proposition. There are dozens of considerations, tangible and intangible, that must be taken into account when evaluating whether a transaction is a good fit. Due diligence is the process by which buyers attempt to dig into all these factors before signing off on a deal.   

6 Key Valuation Drivers of an ARM/RCM Business
By:  Tom Edens 
  1. Size of Company - the larger the company, typically the larger the EBITDA
  2. Management - executive team in place with tangible P&L success in ARM/RCM
  3. Growth & Sustainability - EBITDA & revenues are sustainable and growing
  4. Concentration of Clients - the higher concentration of clients, the more likely an Earnout and/or valuation reduction
  5. Scalable - systems/infrastructure in place and scalable to support growth
  6. Market niche - certain niches now preferred are Healthcare RCM, Government & Student Loans
ARM/RCM - Recent Industry Transactions
Target Description 
May 2019 
Transworld Systems Inc. 
Credit Bureau of Lancaster County, Inc.'s collection division portfolio 
Provider of ARM Services  
June 2019 
Provides software solution for RCM firms
June 2019
Incline Equity Partners 
Brown & Joseph 
Provides commercial accounts receivable management services primarily focused on insurance end markets 
June 2019 
Transworld System Inc.  
NCC Business Services 
Provides collection solutions for the property management and multi-housing industries
July 2019 
Transworld Systems Inc. 
Altisource Portfolio Solutions S.A.'s Financial Service Business 
Provider of collections, customer relationship management, and call center outsourcing
August 2019 
Canada Pension Plan Investment Board and Bain Capital 
RCM provider to health systems, hospitals and physicians offices
August 2019
LaSalle Capital Group, Inc. 
Professional Recovery Consultants  
Provides ARM services
August 2019
Aspirion Health Resources (Aquiline) 
Specialized Healthcare Partners 
Medical claims processor focusing on denied and complex claims 
August 2019 
New Mountain Capital 
Ontario Systems 
Provider of software of revenue recovery for healthcare, ARM and government markets 

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