Healthcare Transaction & Valuation Consulting Case Studies

Valuation and Disposition of Specialty Centers

Our professionals were engaged to provide sell-side advisory services related to the proposed sale of dialysis centers, by a large, private company. In connection with the proposed sale, we performed an initial valuation of the organization, assisted with identifying and evaluating potential buyers, and developed a pitch book to market the centers to strategic buyers. We implemented several initiatives that resulted in operational and financial improvements, significantly increasing the company’s EBITDA and enhancing the company’s attractiveness as an acquisition target. We arranged meetings with prospective buyers, negotiated sale pricing on behalf of our client, and subsequently secured a letter of intent. We advised our client regarding potential critical LOI pitfalls, most notably deal retreading, a common occurrence that can result in significant financial loss. Our client successfully completed the sale of its centers and generated a return of 12.2 times EBITDA -- nearly doubling the industry average.

Feasibility Analysis for Acquisition by Private Equity Firm

We were engaged by a private equity firm seeking to make a significant investment in a specialty hospital organization with eight facilities. Our team evaluated the entities, developed financial models, and performed analyses of operational indicators of the entities. We developed a financial assessment to determine the viability of our client’s investment and recommended that regulatory issues posed substantial risks in this acquisition. Our recommendation was instrumental in our client’s decision to forego the acquisition; the proposed target was acquired in a bankruptcy a short time later.

Due Diligence Related to Hospital Acquisitions

We provided due diligence for a large, publicly traded hospital organization undergoing a rapid rate of expansion. Our professionals provided buy-side advisory services, initially focusing on financial due diligence, but by leveraging our team’s expertise, our role evolved into helping evaluate potential acquisition targets. We assisted with 26 transactions completed by our client, advising on the financial soundness of acquisition targets and determining additional profit maximization opportunities associated with them.