In the mid-April 2010, Clark McCullough, a partner at Ardent Capital, evaluated the final investment memorandum concerning a possible $110 million investment in AtHomeCare, Inc., a private company providing home health care services. Over the course of the prior year, Ardent Capital had completed preliminary due diligence, and in the autumn of 2009, it had signed a letter of intent (LOI) and had been given an exclusivity agreement to think about a potential purchase of the business.
Though the firm fit well within the present areas of investment focus of Ardent, the deal was conceived as a rollup strategy, in which AtHomeCare would function as an investment platform, and other healthcare services firms would be gotten to construct a bigger entity. To date no goal was locked in, although a sizable portion of the due diligence had focused on locating a suitable acquisition target. With the LOI deal set to expire much later in the month, the company's investment committee would now have to choose whether to continue with the purchase of AtHomeCare on a stand-alone basis with just the prospects of yet-to-be-discovered acquirement or postponement of the procurement until an add on acquisition surfaced.
PUBLICATION DATE: September 21, 2012 PRODUCT #: UV6543-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
