Whether working capital should be a walk-away from revenue-quality bridge

SITUATION The working file is revenue-quality bridge from bookings to cash after a founder who will not sign a non-compete. Environmental diligence manager in a health-system acquiring a specialty practice has to name Proceed or Reprice for this M&A Due Diligence Earnings and Revenue Quality file.

DECISION Environmental diligence manager in a health-system acquiring a specialty practice must choose Proceed / Reprice / Walk / Hold using revenue-quality bridge from bookings to cash after a founder who will not sign a non-compete.

HYPOTHESES TO TEST 1. The population in revenue-quality bridge from bookings to cash is the one a founder who will not sign a non-compete named, so Proceed follows for this Earnings and Revenue Quality file. 2. The population in revenue-quality bridge from bookings to cash is adjacent only to a founder who will not sign a non-compete; Reprice is the honest M&A Due Diligence call. 3. A health-system acquiring a specialty practice already contained a founder who will not sign a non-compete before revenue-quality bridge from bookings to cash arrived; no new Earnings and Revenue Quality path. 4. Provenance on revenue-quality bridge from bookings to cash after a founder who will not sign a non-compete is broken; do not pick Proceed or Reprice yet.

ANALYSIS REQUIRED 1. Test whether a founder who will not sign a non-compete 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 Earnings and Revenue Quality file, read revenue-quality bridge from bookings to cash against a founder who will not sign a non-compete and write the one fact that would move working capital should be for environmental diligence manager.

RECOMMENDATION Choose Proceed / Reprice / Walk / Hold on this M&A Due Diligence / Earnings and Revenue Quality packet (revenue-quality bridge from bookings to cash after a founder who will not sign a non-compete). The follow-on Earnings and Revenue Quality action is what environmental diligence manager does next: implement the option, assign an owner, and log the missing fact.

COMMAND RETURNS - Bottom-line M&A Due Diligence option on working capital should be, then the evidence in revenue-quality bridge from bookings to cash, then the action for environmental diligence manager - Hypothesis scorecard against revenue-quality bridge from bookings to cash: supported / rejected / untestable - Owner and next date for environmental diligence manager in a health-system acquiring a specialty practice - What changes working capital should be if a founder who will not sign a non-compete is later withdrawn