Client Services
Strategic Advisory Solutions
Precision matched to your organization, our specialized financial advisory services guide you through complex transactions to achieve efficient goals and secure maximum value.
Whether you’re a physician group seeking a merger or a medtech company looking to raise capital, we help you clearly navigate every step with confidence and an unmatched competitive advantage.
Mergers &Acquisitions
Our M&A advisory team specializes in structuring and managing mergers, acquisitions, and strategic partnerships. We align your vision with the right buyer, partner, or investor, maximizing your value with a seamless process from market positioning to due diligence and closing.
CapitalRaise
We assist a wealth of organizations, including healthcare, biotech, medtech, and biopharma, in raising capital to fuel growth, acquire new facilities, or expand service lines. Working with private equity firms, lenders, and investors, we connect our clients with optimal funding solutions.
DebtAdvisory
Our debt advisory services focus on helping businesses, ranging from healthcare services to medtech and biopharma, optimize capital structure and secure financing options. We help clients restructure existing debt or acquire new financing while minimizing costs and risk.
Our Process
Based on in-depth client engagement, we customize our approach to your organization’s individual requirements.
A typical transaction process includes these steps:
Step 1 – Data Gathering and Analysis
The process begins with comprehensive data gathering. We will provide a list of requested due diligence information and conduct interviews with physicians and management. Some items of interest include financial statements, billing system reports and various legal documents. Once relevant data has been collected, the analysis stage begins. Merritt will review and adjust financial statements to accurately reflect the practice’s value to an investor. Data is then integrated to produce a full and accurate picture of the opportunity and its future potential.
Step 2 – Merritt Due Diligence, Marketing Materials and Production of Confidential Information Memorandum
Merritt will produce marketing materials to inform investors about the opportunity in a comprehensive and attractive way. The Confidential Information Memorandum (CIM) is the primary marketing document. The CIM outlines the practice and its key personnel, operations, growth factors and financial performance. CIMs may be supported by select materials like basic financial statements. Prior to the transmission of a CIM, a “teaser” is developed. This is a one-page document that tells investors about the opportunity at a high level without disclosing identity. Investors can sign a legal confidentiality agreement or “Non-Disclosure Agreement” to receive the CIM and other confidential information.
Step 3 – Buyer List Development
Concurrent with Step 2, Merritt will create a list of qualified and interested prospective investors. The list is derived from prior purchasers with whom Merritt has experience, our extensive contract list and research on firms that have invested in a similar industry or opportunity. Note that processes such as these are not public, and only select investors are notified of the opportunity. Even then, outreach will not include the seller’s identity or any confidential information until an appropriate Non-Disclosure Agreement is signed.
Step 4 – Buyer Engagement
Initial outreach to buyers includes the Teaser and may be conducted via e-mail or telephone. Buyers may have initial questions about the opportunity to help confirm their interest.
If the prospective buyer wishes to receive more information, they must sign the Non-Disclosure Agreement. The CIM and supporting documents are then shared, which typically produces additional questions and conversation.
Step 5 – Letters of Intent
Since the process is highly structured, certain milestones will have “due dates” to help coordinate multiple interested parties. Letters of Intent (LOI) are an example of this and are typically due on a certain date after buyers have had a chance to respond to Merritt’s outreach and review of confidential materials. LOI will include key financial and non-financial terms. There will be questions, negotiations and other steps involved at this stage. The goal is to identify several top contenders among the buyer pool and advance them to the next stage of the process.
Step 6 – The Presentation and “Best and Final” Stage of Bidding
Once the pool of prospective Buyers is narrowed to three to five, Merritt has each present their offers to the Client (usually in one day). During these meetings, the Buyer will review their terms sheets and strategies for growth. We are then able to compare the terms they are offering, side by side. These meetings provide the Client with an opportunity to ask questions directly as well.
Once the offers are fully understood, we can negotiate key points of each and ask the Buyers for a Best and Final offer via a revised LOI. During this stage, a limited number of purchasers are given access to a more comprehensive “data room” where they can review additional, detailed information that can help them refine their offer.
Once the final LOI is received, the Client is in a position to make their selection of who has provided the best terms and would be the ideal long-term partner.
Once the determination is made, an LOI is executed.
Step 7 – Diligence
After the LOI is signed, Buyers will work to complete diligence on the transaction. This is an exercise to both 1) confirm the business is performing as expected, and 2) investigate key risk areas. Most Buyers will have a structured diligence process that is based on a central information request list. That list will include financial, legal, operational and other items of interest. Many Buyers outsource components of the diligence process to accounting firms, insurance and benefits firms as well as other experts.
Step 8 – Legal Documents and Closing
Based on the detailed LOI, attorneys for the Buyer and Seller will create and negotiate a series of legal documents as part of each transaction. Typically, the Seller’s attorney will draft the documents which are then reviewed and edited by the Buyer’s attorney. The documents are negotiated until a mutually acceptable outcome is reached. Once diligence and legal documents are complete, the deal is ready to close.
Step 1 – Initial Consultation and Goal Setting
The process begins with a detailed discussion to understand the Client’s needs, goals, and preferences. This includes identifying the purpose of the capital raise (e.g., expansion, acquisition, refinancing), the desired amount, and acceptable terms. We also conduct a preliminary assessment of the Client’s financial position to determine the feasibility of their objectives.
Step 2 – Data Gathering and Analysis of Financial and Operational Data
We compile and refine the necessary financial documents, including historical financial statements, forecasts, and business plans. This stage involves financial modeling to project potential outcomes and to demonstrate the Client’s ability to utilize the raised capital effectively. Supporting documentation is organized to present a compelling case to investors.
Step 3 – Merritt Due Diligence, Marketing Materials and Production of Confidential Information Memorandum
Comprehensive marketing materials are created, including a Confidential Information Memorandum (CIM) that outlines the business’s key strengths, financial performance, and growth potential. A teaser document may also be prepared to introduce the opportunity to potential investors without disclosing sensitive information.
Step 4 – Investor Targeting and Outreach
We develop a list of prospective investors, such as private equity firms, venture capitalists, family offices, and strategic partners, depending on the Client’s requirements. Targeted outreach is conducted via email, calls, and presentations to generate interest while maintaining confidentiality until NDAs can be signed and Investors are approved by our client.
If the prospective buyer wishes to receive more information, they must sign the Non-Disclosure Agreement. The CIM and supporting documents are then shared, which typically produces additional questions and conversation.
Step 5 – Investor Engagement and Information Sharing
Interested investors are required to sign a Non-Disclosure Agreement (NDA) before accessing detailed information. This step includes answering investor questions, hosting meetings, and providing additional data to support their evaluation of the opportunity.
Step 6 – Selection of Investor(s) and Term Negotiation
During the stage of the process, we work with the Client to review and negotiate the terms of the investment of each term sheet submitted by potential investors. This involves assessing the structure of the deal, valuation, and any associated rights or obligations. This process will continue through investor selection and documentation.
Additionally, we assist the Client in comparing offers and selecting the best investor or combination of investors. This decision is based on financial terms, strategic alignment, and potential for long-term partnership.
Step 7 – Investor Due Diligence
The selected investor(s) conducts detailed due diligence to verify the accuracy of financial and operational information. We facilitate this process by coordinating responses to inquiries and managing data room access.
Step 8 – Legal Documentation
Legal documents are drafted and negotiated to formalize the agreement. This includes investment agreements, shareholder agreements, and any ancillary documents. We work closely with attorneys for both parties to finalize the terms.
Step 9 – Closing and Funding
Once all documents are finalized and conditions are met, the transaction is closed, and funds are disbursed to the Client. Post-closing, we assist with any necessary transition or reporting requirements.
Step 1 – Initial Assessment and Strategy Development
The process begins with an evaluation of the Client’s financial situation, existing debt structure, and borrowing needs. We define the objectives, such as lowering costs, improving terms, or increasing flexibility, and develop a tailored debt strategy.
Step 2 – Data Gathering and Analysis of Financial and Operational Data
We prepare comprehensive financial analyses and reports to present the Client’s creditworthiness and operational strengths. This may include financial projections, debt service coverage ratios, and other key metrics to support the case for financing.
Step 3 – Identification of Lenders
We leverage our extensive network to identify potential lenders, including banks, alternative lenders, private debt funds, and institutional investors. The list is customized to match the Client’s needs and the type of financing sought.
Step 4 – Creation of Marketing Materials
Detailed materials, including a lender presentation and a summary term sheet, are created to provide a clear overview of the financing opportunity. These documents highlight the Client’s financial position, and the proposed terms of the debt raise.
Step 5 – Outreach to Lenders
We initiate contact with targeted lenders, providing them with high-level details of the opportunity. NDAs are secured before sharing more comprehensive information.
Step 6 – Lender Engagement and Proposal Evaluation
Lenders are engaged to discuss their initial proposals. We facilitate meetings, calls, and follow-up discussions to address lender queries and clarify terms. Proposals are evaluated based on cost, structure, and strategic fit.
Step 7 – Selection of Lender(s) and Negotiation of Terms
The Client selects the lender or consortium of lenders offering the best overall package. We provide guidance to ensure alignment with the Client’s objectives.
We negotiate with lenders to secure the most favorable terms, including interest rates, covenants, amortization schedules, and fees. Our goal is to optimize the financing package for the Client.
Step 8 – Lender Due Diligence
Lenders conduct due diligence to validate the Client’s financial and operational data. We coordinate the provision of necessary documentation and address lender concerns.
Step 9 – Documentation and Closing
Legal agreements are drafted and finalized to formalize the financing arrangement. Once all conditions are satisfied, the transaction is closed, and funds are made available to the Client. Post-closing support is provided as needed.
Who We Serve
We work with healthcare business owners and founders who want to achieve fresh strategic and financial opportunities.
We represent healthcare business owners and founders who are considering strategic or financial transactions. Working together, we help owners of healthcare practices, surgery centers, outpatient surgical facilities and their ancillary businesses realize desirable goals.
Who We’ve Worked With
Testimonials
