ACCT618 UNIT 4DB

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Domonique Jones ACCT618-2304B-01 October 26, 2023 Unit 4 DB UnitedHealth Acquisition of LHC Group Inc. For this discussion I choose UnitedHealth, the acquisition of LHC Group Inc. UnitedHealth Group, a company that offers insurance and healthcare services, has plans to purchase LHC Group, a provider of home healthcare. The acquisition will involve UnitedHealth purchasing one share of LHC Group involves handing over $170 in physical currency (Patel, 2023). This deal will allow UnitedHealth to add LHC Group to its Optum subsidiary, specifically within Optum Health. Optum Health is known as one of the biggest employers of physicians in the country. LHC Group currently has over 12 million services provided by a workforce of 30,000 employees provided in homes. The partnership with Optum Health will allow LHC Group to access a larger pool of patients, while Optum Health will gain a wider network of skilled physicians through LHC Group (Patel, 2023). Additionally, the collaboration will benefit Optum by leveraging LHC Group's expertise in home care to enhance its home healthcare sector's ability to provide value-based care services. The rise in demand for home care services will be improved by the collaboration between Optum and LHC Group. This partnership aims to enhance the healthcare experience for their

clients by emphasizing high-quality care and efficient coordination, ultimately reducing complications and confusion (Parker, 2023). Do the present tax regulations encourage or discourage reorganizations such as mergers or acquisitions? IRC368 of the tax code encourages reorganization, offering advantageous tax benefits for both a corporation and its shareholders. Businesses may opt to undergo such changes to boost their earnings. Tax-free restructuring methods can be employed within legal boundaries to enable organizations to pay less taxes. For federal taxation purposes, corporate reorganizations could take several forms including adjusting capital structures, transferring stock from one company to another or dividing a single firm into multiple entities; these strategies are geared towards avoiding income tariff on profits realized by corporations. By following the appropriate reorganization methods permitted under federal income tax law, companies can usually defer their income tax payments. Whether an organization qualifies for tax-free status depends on the jurisdiction it operates in. The aim of providing a tax-free absolution is not just to exclude the corporation from taxes, but also to enhance its overall standing. However, meeting numerous statutory and common law requirements is necessary before this exemption can be obtained (Bloomberg Tax, 2022). When making a decision to merge with or acquire an organization, does it pose any moral considerations that a manager should take into account? Before the merger of two companies, compliance and ethics play a crucial role in the acquisition process. Both managers must conduct a comprehensive study investigation compliance and ethics protocols applicable to all parties involved before agreeing to any terms.

Additionally, during pre-acquisition stages, it is essential for leaders to understand both company cultures thoroughly as compatibility is vital for success. Aspects such as business practices, work ethic, mission statement, leadership style and values contribute significantly towards organizational culture assessment. While integrating newly merged organizations post-merger takes time - managing teams should do so with care while allocating sufficient resources along with effective planning thus increasing chances of instituting an efficient larger organization (Haney 2017). References: Bloomberg Tax. (2022, August 23). Tax considerations in M&A and restructuring. Bloomberg Tax. https://pro.bloombergtax.com/brief/tax-considerations-in-ma-and-restructuring/ Haney, B. S. (2017, June 13). Ethics pitfalls in mergers, acquisitions. https://www.nationaldefensemagazine.org/articles/2017/6/13/ethic-pitfalls-in-mergers- acquisitions Parker, J. (2023, February 22). [updated] Optum closes $5.4 billion LHC Group acquisition. Hospice News. https://hospicenews.com/2023/02/22/unitedhealth-group-closes-5-5-billion-lhc-group- acquisition Patel, K. (2023). 16 Largest mergers and acquisitions: Recent M&A deals (2023 updated). FirmRoom. https://firmroom.com/blog/largest-recent-m-a

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