Assess whether related-party sales should be backed out of valuation (0dccea)
August 31, 2026
SITUATION A Phase II that found groundwater impact put revenue-quality bridge from bookings to cash in front of carve-out separation lead in a health-system acquiring a specialty practice. This M&A Due Diligence / People and Contracts close is related-party sales should be from revenue-quality bridge from bookings to cash, and the live options are Proceed, Reprice, Walk.
DECISION Carve-out separation lead in a health-system acquiring a specialty practice must choose Proceed / Reprice / Walk / Hold using revenue-quality bridge from bookings to cash after a Phase II that found groundwater impact.
HYPOTHESES TO TEST 1. Carve-out separation lead can defend Proceed from revenue-quality bridge from bookings to cash after a Phase II that found groundwater impact in a M&A Due Diligence challenge. 2. Carve-out separation lead cannot defend Proceed from revenue-quality bridge from bookings to cash; Reprice is what the extract actually supports after a Phase II that found groundwater impact. 3. A Phase II that found groundwater impact never reached the population in revenue-quality bridge from bookings to cash — reopen intake, do not close related-party sales should be. 4. Two facts in revenue-quality bridge from bookings to cash after a Phase II that found groundwater impact conflict for carve-out separation lead; hold this People and Contracts file.
ANALYSIS REQUIRED 1. Test whether a Phase II that found groundwater impact is a diligence gap, a price chip, or a walk-away. 2. Separate a one-off add-back from a recurring earnings issue in revenue-quality bridge from bookings to cash. 3. Map reps, earnout mechanics, and integration risk a health-system acquiring a specialty practice would inherit. 4. For this M&A Due Diligence People and Contracts file, read revenue-quality bridge from bookings to cash against a Phase II that found groundwater impact and write the one fact that would move related-party sales should be for carve-out separation lead.
RECOMMENDATION Choose Proceed / Reprice / Walk / Hold on this M&A Due Diligence / People and Contracts packet (revenue-quality bridge from bookings to cash after a Phase II that found groundwater impact). The follow-on People and Contracts action is what carve-out separation lead does next: implement the option, assign an owner, and log the missing fact.
COMMAND RETURNS - Bottom-line M&A Due Diligence option on related-party sales should be, then the evidence in revenue-quality bridge from bookings to cash, then the action for carve-out separation lead - Hypothesis scorecard against revenue-quality bridge from bookings to cash: supported / rejected / untestable - People and Contracts finding in revenue-quality bridge from bookings to cash that a second reviewer can re-perform - Missing page in revenue-quality bridge from bookings to cash after a Phase II that found groundwater impact, if any
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