Decosimo serves as the exclusive buy-side due diligence consultant for U.S. HealthWorks, a leading operator of occupational healthcare centers in the nation, on 20 transactions and 35 centers in six states.
About U.S. Healthworks
Based in Valencia, Calif., U.S. HealthWorks was founded in 1995. With approximately 161 centers, U.S. HealthWork’s centers serve thousands of patients each day throughout the country. These centers help employers control work-related injury costs through quality medical care and effective management of claims and lost work time.
The vision of U.S. HealthWorks is to provide innovative occupational health services that ensure continuous improvement to American productivity. Their growth strategy includes center acquisitions. As part of the target center acquisition process a due diligence process was developed. The process includes the performance of financial and operational due diligence procedures.
After reviewing U.S. HealthWorks transaction due diligence process, we encouraged the development of a participative process to include financial management, development, regional operations, and Decosimo representatives. The team approach enhances the financial due diligence process, facilitates managements’ identification and analysis of relevant information, accelerates buyer decision making, assists in gathering closing information, and improves the ownership transition process.
The financial due diligence process was developed to accumulate, analyze and report information in a timely manner. The Decosimo process is generally initiated when a letter of intent (LOI) is executed. The LOI triggers a timeline and a series of tasks that include electronic data portal access, information requests, analysis of data, planning procedures, site-visit(s), interviews, findings development, a review process and a report.
Over a span of several years, the Decosimo process has provided qualitative and quantitative information for consideration by U.S. HealthWorks. This information, combined with the company’s internal analysis, has resulted in a better understanding of the quality of earnings, assets and liabilities, and other factors positively impacting purchase decisions, agreements, budget accuracy and return on investment.
By Cole Powell