Secure Workflows: Protecting Data in Global Outsourced Operations
18 DECEMBER 2025
Company Overview
A healthcare company engaged Windy Street to assist with a goodwill impairment analysis amid growing concerns about its future financial performance. The company was experiencing both external market pressures and internal operational challenges, which raised red flags regarding the reliability of its forecasts and overall risk profile.
Windy Street was brought in to assess these concerns, evaluate the company’s valuation outlook, and provide a credible, audit-ready analysis aligned with current business realities.
Complexity
Overly Optimistic Projections:
One of the primary challenges identified during the valuation process was the presence of overly aggressive and optimistic growth projections. These forecasts failed to fully account for the evolving landscape of healthcare delivery, particularly the rapid adoption and expansion of telehealth services. As more patients shifted to virtual consultations, traditional in-person visits – once a key revenue driver for the company – began to decline. This behavioral shift among patients significantly affected visit volumes and revenue streams, making previous growth assumptions less realistic and increasing the risk of goodwill impairment.
Operational Inefficiencies:
In addition to external market challenges, the company was also facing significant internal operational inefficiencies. Issues arose from the integration of several newly acquired clinics, which led to challenges in standardizing care practices and aligning operational protocols. The lack of consistency in service delivery and quality standards across locations created friction, both internally and in patient experience. Furthermore, poor communication among departments and leadership teams led to delays in decision-making and implementation of critical improvements. These inefficiencies contributed to increased operational costs and limited the company’s ability to respond effectively to ongoing market changes. Together, these factors raised substantial concerns about the company’s ability to meet its projected financial performance, directly impacting the assessment of goodwill and the potential for impairment.
Windy Street Solution
Comprehensive Examination:
To address these challenges, Windy Street conducted a thorough and multifaceted evaluation of the company’s operations, forecasts, and market positioning. This process included in-depth discussions with both the company’s management and its external auditors to develop a clear understanding of the assumptions underlying the financial projections. These conversations helped to identify and assess the risks associated with the current outlook and evaluate the credibility of the assumptions made in light of the internal and external headwinds. Windy Street also explored a range of potential mitigation strategies aimed at addressing operational weaknesses and improving the reliability of the forecasts.
Scenario-Based Risk Evaluation:
Recognizing the inherent uncertainty in the company’s future performance, Windy Street employed scenario-based analysis techniques to better understand and quantify potential downside risks. Multiple scenarios were constructed to reflect varying degrees of impact from both telehealth adoption and internal inefficiencies. This analysis allowed for a more dynamic and realistic view of the company’s future cash flows under different operating conditions. As part of our approach to account for heightened risk and uncertainty, we adjusted the discount rate by incorporating a higher Company-Specific Risk Premium (CSRP). This adjustment ensured that the valuation appropriately reflected the company’s increased risk profile and supported a more conservative and defensible goodwill impairment analysis.
Through this structured and analytical approach, Windy Street was able to deliver a comprehensive and supportable valuation outcome that addressed both the market-driven and operational complexities facing the company.
