When an acute Foundation Trust were selected as the preferred bidder to merge with a neighbouring acute provider, we were engaged to populate Monitor‘s Long Term Financial Model (LTFM).
This involved analysing all relevant source documents, such as:
- 3 years’ annual accounts for both organisations
- Current year plan for the FT as submitted to Monitor
- Current year for the neighbouring provider as signed off by the SHA
- Cost improvement programme for the next 5 years
- Other financial projections for the next 5 years, including income, expenditure, cash flow and capital
The data from these documents was used to populate the LTFM with 3 years’ historic data, the current year forecast and 5 years of projected financials so that the acquisition could be reviewed by Monitor. In addition, we produced a report for the FT Board summarising the outputs of the LTFM and giving an initial assessment as to the financial viability of the combined entity post-acquisition.
Following Board approval, this information was finally incorporated into the Integrated Business Plan for the acquisition that was submitted to the Competition and Co-operation Panel and then Monitor for final regulatory approval.