Rising Demand for Mission-Critical C-Suite Advisory Services

Across many industries, shifting financial, operational, and regulatory dynamics create complexity that C-suite decision makers need to manage. To solve an expanding range of challenges, these leaders are increasingly looking to outside experts for help.

“There’s a growing need for advisors with experience in areas like compliance, accounting, financial reporting, valuation, and other strategic advisory services,” says Derek Lewis, a managing director in our Business Services Group. “These third-party subject matter experts are especially important for tasks that are vital to a company’s operations.”

Rising demand for solutions that ease pain points in these areas is capturing the attention of investors, particularly where there are complex regulatory requirements. “Healthcare is a prime example as it features a complicated financial environment, revenue that’s hard to manage, and margin pressures,” explains James Clark, a managing director in our Healthcare & Life Sciences Group. “In addition, it’s a highly regulated industry with ever-changing compliance requirements that must be monitored and adhered to.”

Beyond healthcare, there are attractive professional and tech-enabled services opportunities in other end markets with similar qualities. Below, our senior professionals share how VMG Health (VMG), a recent Harris Williams client, exemplifies the investment opportunity in companies providing mission-critical solutions for the C-suite.

VMG Health Helps Navigate Complexity and Mitigate Client Risk

VMG provides compliance-driven valuation and advisory services to help healthcare organizations navigate a complicated and evolving landscape. Its complementary suite of capabilities, and its valued partnerships with healthcare organizations have led to steady, long-term growth.

VMG’s success is supported by several demand drivers that create predictable revenue and consistent customer retention. For starters, healthcare organizations rely on VMG to ensure compliance with an array of regulations related to Stark Law, the Federal Anti-Kickback Statute, and IRS private inurement rules. “VMG’s solutions mitigate their clients’ risk against steep financial penalties for non-compliance,” says Bryce Walker, a managing director in our Business Services Group.

Care delivery also continues to evolve, driving more providers to form partnerships outside of the hospital setting. Meanwhile, value-based care models are making physician compensation agreements more complex and difficult to appropriately value. Each of these factors generates new valuation and advisory work for firms like VMG Health.

As a trusted strategic advisor with in-demand solutions, VMG has built long-lasting client relationships across a range of attractive healthcare verticals, and it is poised for continued growth. “VMG is well-positioned to continue expanding in this large, resilient, and fragmented addressable market,” notes Lewis. “With deep subject matter expertise, opportunities to broaden its service offering, and a proven M&A playbook, VMG can tap into many avenues for value creation.”

Gaining Access and Influence

In many industries, mission-critical advisory services with a high cost of failure are a powerful access point to key decision makers in the C-suite.

Leading solutions providers have a long runway for expansion by adding complementary capabilities to capture incremental client demand. The future is bright for companies that offer differentiated expertise and find innovative ways to solve a wider breadth of C-suite challenges.

To discuss the M&A potential within professional and tech-enabled services, contact our senior professionals.