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Valuation and Opinion on Proposed Healthcare Merger

By July 13, 2022Insights

With healthcare consolidation trending, it is important for physician shareholders to understand both the terms of a potential merger and the impact it would have on their equity interests. Obtaining this information requires complicated financial analysis and reporting, which can be daunting for someone lacking financial expertise. Hiring an experienced financial advisor is therefore integral to making an informed decision about any merger, and becomes one of the most important decisions a business owner can make.

The physician shareholders of Platinum Dermatology Partners retained MCA Financial Group to review and advise on its proposed merger with West Dermatology. 

MCA’s team worked with professionals on both sides of the transaction and analyzed the information needed to determine the merger’s efficacy and impact on the physician shareholders’ interests. Calculations of the physician shareholders’ pre and post-merger interests were reviewed to establish consistency with the merger documents. MCA scrutinized the valuation methodology, reasonableness of the transaction terms, and the merger agreement between Platinum and West Dermatology.

Concluding that the physician shareholders’ treatment was fair and reasonable and that the shareholders’ interests were properly represented in the merger agreement, the physician shareholders of Platinum Dermatology Partners voted to approve the merger.

MCA’s decades of experience with and in-depth knowledge of valuation methodologies, liquidation preferences, merger agreements, operating agreements, capital waterfalls, and calculations of various returns, together with current market data on similar transactions were critical in producing a clear and concise recommendation and sound advice to the physician shareholders of Platinum Dermatology.