BackgroundA physician-owned clinical research site is approached by a private-equity owned acquiror aggressively consolidating a fragmented industry. The transaction stalls post-execution of the letter of intent due to the Company's inability to support the due diligence process and provide accurate financial information. The buy-side investment bank recommends Paradigm to the Company to perform sell-side due diligence procedures to enable the deal to move forward.
- Cash-to-accrual accounting conversion
- Executed due diligence procedures including revenue and cut-off testing
- Developed monthly revenue analysis including revenue by clinical study, development phase, patient volumes, and revenue mix
- Built revenue pipeline and backlog analysis
- Constructed monthly financial projections
- Compiled analyses into due diligence databook including EBITDA table with diligence and proforma adjustments
- Supported net working capital analysis/negotiation, purchase agreement disclosures, and analysis of earn-out structures