Overview Case considerations Case directions Key topics 8/31/2019 Blackhawk Urology Overview Case considerations Case directions Key topics 8/31/2019 Senior Seminar in Finance Senior Seminar in Finance

Senior Seminar in Finance 8/31/2019 Overview January, 2015 Two physicians in a urology medical practice have embarked on a substantial expansion with the hiring of a PA (physician assistant) and impending new hires to accommodate increased patient volume. At the time of the case, cash reserves are “dwindling”, the physicians have taken a pay cut, and they are worried about the costs of expansion. 8/31/2019 Senior Seminar in Finance Senior Seminar in Finance

Senior Seminar in Finance Expense g outpacing revs Increased collection time on A/R A/P falling Inability to maintain Docs salaries 8/31/2019 Senior Seminar in Finance

Senior Seminar in Finance 8/31/2019 Case considerations Should the doctors be concerned about the financial outlook of Blackhawk? Will the situation improve in 2015? What alternatives do the physicians have? What recommendations do you have to improve the situation in 2015? 8/31/2019 Senior Seminar in Finance Senior Seminar in Finance

Senior Seminar in Finance 8/31/2019 Case directions Forecast the financial statements for 2015, beginning with the following assumptions for your BASE case: Be sure to incorporate the discussion of expected revenue and cost changes into the forecast model. Make forecast receivables a function of receivable days Use physician pay as the plug that balances the balance sheet, and indicates how much is available for their pay. This creates your “base” case. You will also create another forecast utilizing your recommendations. 8/31/2019 Senior Seminar in Finance Senior Seminar in Finance

Senior Seminar in Finance 8/31/2019 Case directions After the base forecast is completed, evaluate the forecast, prior financial results, and case discussion. Consider what problems exist currently. Consider what key issues have created the problems. 8/31/2019 Senior Seminar in Finance Senior Seminar in Finance

Senior Seminar in Finance 8/31/2019 Case directions Conduct analysis to reveal what alternatives are available. Based on analysis, which specific course of action do you recommend? Show why it is best. Be sure to include both the “base” forecast and the “fix-it” forecast utilizing your recommendations to show improvements. 8/31/2019 Senior Seminar in Finance Senior Seminar in Finance

Senior Seminar in Finance 8/31/2019 Case preparation Prepare a 15 slide (max) presentation (20-25 minutes) for the physicians to: Explain/show the business problems faced by the firm given current trends; Explain/show the recommended solutions with justifications. Compare “before-after” results Use best practices for slide presentations: Organized and logical progression Easy to understand; simple, clear, and focused Gear level of presentation to physicians Needs to be persuasive 8/31/2019 Senior Seminar in Finance Senior Seminar in Finance

Senior Seminar in Finance 8/31/2019 Case preparation Include a complete spreadsheet model with assignment: Include a complete working model with both base case (current trends) and “fix-it” scenario. Provide both Spreadsheet and formula’s behind it. Use best practices for spreadsheets: Organized and logical layout Functional models Professional, polished appearance Easy to understand; simple, clear, and focused 8/31/2019 Senior Seminar in Finance Senior Seminar in Finance

Senior Seminar in Finance 8/31/2019 Scoring criteria Grading Criteria Weight Score   PowerPoint presentation Organized and logical Clear and focused Proper level presented Persuasive and credible 25 Spreadsheet model Organized and logical layout Functional models created Professional, polished appearance Easy to understand, clear, focused Total 50 8/31/2019 Senior Seminar in Finance Senior Seminar in Finance

Senior Seminar in Finance 8/31/2019 Key topics Financial forecasting Financial analysis Financial management of growth Persuasive presentation of analysis 8/31/2019 Senior Seminar in Finance Senior Seminar in Finance