Assess whether a top customer is actually sticky after IT diligence showing

Situation

A top customer is actually sticky sits with carve-out separation lead because IT diligence showing two ERPs and no chart of accounts map hit a health-system acquiring a specialty practice. Evidence is related-party revenue that disappears at close; write the M&A Due Diligence People and Contracts option that extract can carry.

Decision

Carve-out separation lead in a health-system acquiring a specialty practice must choose Proceed / Reprice / Walk / Hold using related-party revenue that disappears at close after IT diligence showing two ERPs and no chart of accounts map.

Hypotheses to test

• Related-party revenue that disappears at close reads as Proceed once IT diligence showing two ERPs and no chart of accounts map is lined up to the same M&A Due Diligence population.
• Related-party revenue that disappears at close is closer to Reprice after IT diligence showing two ERPs and no chart of accounts map; Proceed would over-claim this People and Contracts extract.
• Walk is still live in related-party revenue that disappears at close for carve-out separation lead in a health-system acquiring a specialty practice.
• Related-party revenue that disappears at close is missing the fact carve-out separation lead needs after IT diligence showing two ERPs and no chart of accounts map; stop this M&A Due Diligence close.

Analysis required

• Test whether IT diligence showing two ERPs and no chart of accounts map is a diligence gap, a price chip, or a walk-away.
• Separate a one-off add-back from a recurring earnings issue in related-party revenue that disappears at close.
• Map reps, earnout mechanics, and integration risk a health-system acquiring a specialty practice would inherit.
• For this M&A Due Diligence People and Contracts file, read related-party revenue that disappears at close against IT diligence showing two ERPs and no chart of accounts map and write the one fact that would move a top customer is actually sticky for carve-out separation lead.

Recommendation

Choose Proceed / Reprice / Walk / Hold on this M&A Due Diligence / People and Contracts packet (related-party revenue that disappears at close after IT diligence showing two ERPs and no chart of accounts map). Lead with the M&A Due Diligence option related-party revenue that disappears at close can support after IT diligence showing two ERPs and no chart of accounts map, then the two facts that force it, then the Monday action for carve-out separation lead in a health-system acquiring a specialty practice.