Services of Interest to Private Equity Firms, Part 2

+ Return to Blog Home
February 14, 2013

Services of Interest to Private Equity Firms, Pt. 2: External & Internal Environments

We approach our analyses catered to the depth of need of the acquirer. While we do not perform the forensic accounting, we can complete full scope of analysis from the external and internal environmental factors to normalizing and forecasting income and expenses. A comprehensive approach would include:

External Environment

  • Define the service area and profile
    • General perspective on patient/client base
    • Regulatory and business factors
    • Clinical and practice locations
  • Conduct the service area structure analysis (e.g., Porter’s Competitive Strategy Model)
    • Evaluate threat of new market entrants
    • Intensity of rivalry among existing organizations/competitors
    • Threat of substitute products/services
    • Bargaining power of customers & suppliers
  • Conduct competitor analysis and map strategic groups
    • Evaluate potential competitor strengths & weaknesses
    • Identify strategic competitors
    • Map groups by price and range of services
    • Suggest likely competitor responses
  • Synthesize analyses for summary of the external environment

Internal Environment

  • Surveying – internal organization subsystems analysis through the lenses of staffing, information/intelligence, technical capabilities, and synergies
    • Administrative services
    • Clinical service
    • Marketing
    • Financial
    • General management
    • Physical facilities
  • Inspecting – strengths and weaknesses of organization resources, competencies, and capabilities
    • Value
    • Rareness
    • Imitability
    • Sustainability
  • Investigating – competitive relevance of cost or uniqueness drivers of internal strengths and weaknesses
  • Evaluating – identifying the strategic implications of the internal organizational position and potential competitive advantages
  • Synthesize analyses for summary of the internal environment