Private equity owners retained Dynamic Healthcare Solutions to lead a turnaround of a healthcare company with 115 clinics in 14 states after it missed a mezzanine payment. Under Mr. Crowley’s leadership, the company went on to become one of the most profitable in its industry, accretively acquiring more than 100 clinics and continuing to grow and prosper through the Great Recession.
Some key elements of the turnaround:
- Improved cash flow by reducing costs and systematically improving billing and cash collections
- Refinanced debt on favorable terms and ultimately paid dividends to shareholders in excess of their equity investment
- Built a strong management team that included many people already working at the company
- Led a legislative initiative that improved a crucial state fee schedule
- Harnessed the power of technology to create superb business intelligence tools to drive operational improvement and productivity gains
- Created pricing discipline to protect and improve margins
- Engaged and empowered doctors
- Created a business development team and added more than 100 clinics to the portfolio
- Automated key processes
- Developed key metrics to measure performance
Results
Grew revenues by approximately 120% and EBITDA by more than 400%.
All lenders were paid in full, and the owners realized significant value creation through a sale to a strategic buyer at an attractive multiple.