Assess whether integration costs were sandbagged in the CIM (b318e3)

SITUATION Carve-out stranded-cost model arrived with add-backs that are just delayed opex for environmental diligence manager. That is a M&A Due Diligence Earnings and Revenue Quality decision on integration costs were sandbagged in a health-system acquiring a specialty practice.

DECISION Environmental diligence manager in a health-system acquiring a specialty practice must choose Proceed / Reprice / Walk / Hold using carve-out stranded-cost model after add-backs that are just delayed opex.

HYPOTHESES TO TEST 1. Carve-out stranded-cost model reads as Proceed once add-backs that are just delayed opex is lined up to the same M&A Due Diligence population. 2. Carve-out stranded-cost model is closer to Reprice after add-backs that are just delayed opex; Proceed would over-claim this Earnings and Revenue Quality extract. 3. Walk is still live in carve-out stranded-cost model for environmental diligence manager in a health-system acquiring a specialty practice. 4. Carve-out stranded-cost model is missing the fact environmental diligence manager needs after add-backs that are just delayed opex; stop this M&A Due Diligence close.

ANALYSIS REQUIRED 1. Test whether add-backs that are just delayed opex is a diligence gap, a price chip, or a walk-away. 2. Separate a one-off add-back from a recurring earnings issue in carve-out stranded-cost model. 3. Map reps, earnout mechanics, and integration risk a health-system acquiring a specialty practice would inherit. 4. For this M&A Due Diligence Earnings and Revenue Quality file, read carve-out stranded-cost model against add-backs that are just delayed opex and write the one fact that would move integration costs were sandbagged for environmental diligence manager.

RECOMMENDATION Choose Proceed / Reprice / Walk / Hold on this M&A Due Diligence / Earnings and Revenue Quality packet (carve-out stranded-cost model after add-backs that are just delayed opex). If carve-out stranded-cost model cannot force a M&A Due Diligence label under Earnings and Revenue Quality, stop. Do not invent missing evidence a health-system acquiring a specialty practice does not have.

COMMAND RETURNS - Bottom-line M&A Due Diligence option on integration costs were sandbagged, then the evidence in carve-out stranded-cost model, then the action for environmental diligence manager - Hypothesis scorecard against carve-out stranded-cost model: supported / rejected / untestable - Named option among Proceed, Reprice, Walk and the fact that kills the others - Owner and next date for environmental diligence manager in a health-system acquiring a specialty practice