Case Studies 12

An investment fund considering the acquisition of a healthcare services company commissioned Easton Associates to conduct an objective evaluation of the prospects for the company’s intra-dialytic nutrition and infusion services businesses. Our due diligence assessment included evaluation of the important advantages and disadvantages of the company’s product lines, trends and drivers in utilization of the company’s services, reimbursement considerations, competitive dynamics, potential risks to the business and the impact which an infusion of capital would have on revenue development. EA projected company revenues under several scenarios; we confirmed the fund’s preliminary analysis, enhancing the client’s confidence in its valuation of the company and the security of the investment.