Insights > Providing Sell-Side Analysis and Bankruptcy Support for Healthcare Provider

Providing Sell-Side Analysis and Bankruptcy Support for Healthcare Provider

Challenge

A national provider of healthcare equipment and services was on the market to be sold by an investment bank in order to clear its existing debt. Its rental assets were not generating enough profit and revenue continued to shrink each month. With revenue down and the overall outlook for the medical equipment rental market unclear, potential buyers were skeptical regarding the company’s forecast of significant rental growth. In order to receive an offer of sale, the investment bank needed to understand the company’s debt load and work to clear it.

The provider exited bankruptcy after a short 45-day period with a significantly reduced debt load and an achievable and realistic plan to meet its 13-week cashflow forecast.

How we helped

Conway MacKenzie was engaged to support the company through the investment bank sale process. We provided the investment company with analysis on utilization—a main focus of the rental asset business—to use for its presentations with potential buyers. We collaborated with management to develop and report on its current state of liquidity by providing 13-week cashflow forecasting and developing multiple versions of KPI analysis, which provided a clear picture of the company’s operations and business performance. As a result of this thorough diligence, we determined it was in the company’s best interest to enter Chapter 11 bankruptcy.

Since this was the company’s first bankruptcy filing, we guided management through the process and managed all critical vendors and related payments to ensure no creditors were impaired. Additionally, we prepared and submitted all necessary schedules to the company’s legal counsel while providing required weekly compliance reporting to the US Trustees Office.

Results

The provider exited bankruptcy after a short 45-day period with a significantly reduced debt load and an achievable and realistic plan to meet its 13-week cashflow forecast.

Ready to Connect?

Our experienced professionals provide critical support during periods of transition, from operating the accounting function to designing the future state and managing the cutover. Contact us to learn more.