Case Studies

Assisting a Healthcare Company Through the Sale Process

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Home·Assisting a Healthcare Company Through the Sale Process

The Situation

A 50-doctor private cancer practice. $250 million revenue. $30 million debt. 17 locations in 3 states. Market leader in Southern Ohio.

  • The founding partner retired and left a leadership gap for multiple years.
  • The Company burned through $17 million of cash with billing cycle problems and failing to address money-losing locations and physicians’ compensation issues.
  • The Company had weak financial controls and systems.
  • The new management team was all non-healthcare industry managers.
  • The Company was almost out of cash and in default of its loan agreement.
     

How We Advised

Our team focused on billing cycle issues and collecting old accounts receivable to generate cash.

  • Adjusted physicians' compensation to be a function of the current cash situation.
  • Reduced costs across all areas.
  • Encouraged some physicians to seek alternative employment.
  • Reposition the Company for sale to a large hospital system and assist with the sale.
  • The Company was successfully sold in two separate transactions.
  • Physician owners received a meaningful equity distribution and long-term financial stability for their practice.

Key Contact

Dan F. Dooley, CTP
Senior Managing Director
Strategic Advisory Practice
+1 603 660 8952
[email protected]

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