Sherlock Company provides financial advisory services to firms in contemplation of a purchase or sale of a controlling interest in a firm. We assist in developing parameters of value specific to the circumstances of a transaction in order to facilitate negotiations with prospective business partners and to aid in understanding the financial implications of significant corporate changes. Our background and familiarity with administrative expense management, through SEER, provides Sherlock Company with unique and valuable insights on potential efficiencies and economies of scale. Below we summarize examples of some recent projects that we have completed for our clients.
Sherlock Company was engaged to evaluate the terms of a possible sale of a health plan by a hospital system. The suitor was a publicly traded firm and the sole shareholder was a non-profit hospital system. The suitor offered several forms of currency, ranging from acquisition for cash, to cash and partial participation in the anticipated improvement in the performance of the operating company.
We were retained by a managed care subsidiary of a publicly-traded diversified health care company to financially model the divestiture of that subsidiary. We assisted it in considering strategic, tax, cash flow and financial feasibility implications of several divestiture methodologies. Alternatives considered included a reverse triangular merger, an initial public offering, a spin-off and a split-off. Our analysis also considered the practical affects of merger with specific candidates. The parent organization is currently contemplating a significant restructuring involving this and other divisions.
Sherlock Company assisted the non-profit shareholders of a health plan in understanding the value of their business in consideration of its sale. We developed a number of scenarios to capture the financial implications of the transaction under various operating and financial performance assumptions. The health plan was sold, improving the overall performance of the shareholders from an operational and financial perspective.