A Playbook for Private Equity Success

FTI Consulting experts provided finance function integration of acquisitions and buy-side support to a PE-backed urology medical services organization.

FTI Consulting experts provided finance function integration of acquisitions and buy-side support to PE-backed urology medical services organization.

Situation

Solaris Health (“Solaris” or the “Company”) was founded in June 2020 when Lee Equity used the medical service organization (“MSO”) to purchase non-clinical assets of two urology physician groups in New York and Ohio.

Solaris executed additional acquisitions between 2020 and 2022 in Pennsylvania, Illinois, Colorado, Maryland, Michigan and Florida.

Because of the high volume of M&A activity and the need to quickly integrate new acquisitions into the MSO and Solaris Health’s reporting structure, Solaris and Lee Equity turned to FTI Consulting.

Our Role

FTI Consulting was hired to execute a multifaceted scope of services. First, we provided accounting and finance integration and transformation services, including preparing purchase accounting entries for acquisitions, serving as Interim Controller, and developing and implementing accounting best practices for both the legacy and acquired companies.

In addition, we performed buy-side due diligence for multiple acquisitions in order to assist Solaris and Lee Equity. We also helped the Company’s finance team prepare a monthly close cadence, company-wide accounting policies and procedures, reporting, budgets and audit support. The due diligence and post deal finance integrations created synergies throughout the organization.

We also developed an integration playbook to shift integration activities from our consultants to the Company’s individual practice finance teams, with FTI Consulting acting as advisors and reviewers of work product for the teams.

“Working with FTI has really enabled us as a board, to focus on what we want to focus on – growing and scaling the business without worrying that integration is going to slow us down.” — Christian Chauvet, Principal, Lee Equity Partners

Our Impact

Completed each of eight integrations within four months of the purchase date

FTI Consulting managed daily accounting and finance functions and transition responsibilities until a full-time replacement Controller was onboarded. We successfully constructed a 13-week cash flow forecast model and monthly accrual accounting close process, which was approved by the management team and used in financial reporting for Lee Equity.

Our team assisted in the successful conversion of acquired practices from cash to accrual accounting, including the determination of the physician distribution pool. We also worked with the Company to create a step plan to rationalize the bank account structure across the MSO and acquired practices.

By assuming integration activities, FTI Consulting experts allowed Solaris and Lee Equity to focus on their growth strategy.