Merger Analysis
Use the Internet to research two (2) publically held health care organizations in the state of South Carolina that you believe would benefit from a merger. Download and review each organizations financial statements. Develop a competence in making financial decisions using net present value, pertinent financial ratios, and break-even analysis.
1.Solaris Health Systems out of Greenville , SC changed name to JFK Health Systems plans to merge with Caris Healthcare in Tennessee
http://www.jfkmc.org/pdf/2010%20JFK%20Medical%20Center%20audited%20financials.pdf
2. Loris Healthcare System of Loris, SC who recently merged with McLeod Healthcare of SC.
The attached file is an audit of Loris Healthcare in 2011 and them after merging with McLeod
http://www.dacbond.com/GetContent?id=0900bbc7801077ab
1. Conduct basic financial statement and operating indicator analysis to assess the financial
condition of the two (2) health care organizations you selected.
2. Analyze the organizations debt, equity financing, and capital structure of the two (2)
organizations.
3. Analyze the capital structure and cost of capital of the two (2) organizations.
4. Conduct a risk analysis regarding the merger of the two (2) organizations you have identified.
5. Analyze current receivables management of the two (2) organizations and make
recommendations for how receivables management should be addressed post-merger.
6. Explain which financial ratios you used in your analysis and how they were derived in an
appendix to your assignment.
7. Provide at least four (4) qualified sources, e.g., peer-reviewed journals, professional organization Website, or health care provider Websites.
