Richard Wilson: asking for financial history at each location
A medical practice group's presentation led to a request for five years of financials at each practice. Richard described why that next step made sense to him.
The group had passed the first exchange
Richard had already asked an initial set of questions, followed up on the answers and shared the presentation with an investor. The investor remained interested. His next request moved below the group description to the individual practices.
The records would shape the next conversation
Richard understood the request as a way to see both the underlying financial history and whether the group could supply organized records. He also distinguished this stage from basic screening: detailed financial disclosure was a point at which the investor was willing to consider a confidentiality agreement.
In Richard C. Wilson's words
"That will save us a lot of time because if they can't provide them and they're not well organized or if the financials are bad" (Richard C. Wilson, Due Diligence mini-series)
How to use this
- Separate the group presentation from the history of its individual locations.
- Note whether requested records arrive in a form that permits the next review.
Questions and answers
What detail did the investor request?
Five years of financial records for each individual practice.
What had Richard already shared?
The presentation and two rounds of written questions and answers.