TRANSACTIONS + GROWTH
Behavioral healthcare transactions are operational transactions disguised as financial ones. Revenue matters. EBITDA matters. Contracts matter. But so do licensure, documentation, reimbursement practices, referral relationships, clinical workflows, credentialing, employment arrangements and the way the organization actually produced the revenue being acquired. A spreadsheet cannot tell you all of that.
Due diligence should answer a harder question.
Not simply, “What is this company worth?” But, “What are we inheriting?” McCabe Kent helps buyers, sellers and operators evaluate behavioral health transactions through both the legal and operating realities of the business. That includes regulatory diligence, reimbursement exposure, corporate structure, material contracts, licensure, operational practices and potential liabilities that may survive closing.
Growth creates risk when diligence stops at the data room.
The best transaction counsel does more than document the deal. It helps leadership understand what the deal becomes on Day One.
THE QUESTIONS LEADERS ASK US
What should buyers review when acquiring a behavioral health company?
Due diligence may include corporate structure, material contracts, licensure, reimbursement practices, clinical and operational processes, employment matters, referral relationships, compliance history and potential liabilities.
Why is regulatory diligence important in behavioral health M&A?
Behavioral healthcare organizations operate under licensing, reimbursement and other regulatory requirements. Problems in those areas can affect the operation or value of a business after closing.
Can reimbursement practices create acquisition risk?
Yes. Historical billing, documentation and reimbursement practices may create financial, contractual or regulatory issues that a buyer should understand before completing a transaction.
When should legal diligence begin?
Legal diligence is generally most useful early enough in a transaction for identified issues to influence structure, valuation, contractual protections, closing conditions or the decision to proceed.