Medical Staffing Services
Service:Financial Advisor to Lender
Company:$200MM Provider of medical, professional and administrative staffing services to the healthcare industry in the United States.
The Company lacked sound corporate controls and infrastructure and was experiencing cash flow difficulties, operational inefficiencies and issues with the collectability of their accounts receivable. The Lender suspected fraud by Company executives and, at the time of the engagement, had over advances of $6MM on its revolver. Focus Management Group was engaged as Financial Advisor to the Lender to review the Company’s operations and financials in order to determine the current health of the business and provide recommendations to the Lender on whether to explore exit strategies or to continue funding operations.
Focus Management Group was engaged to perform a detailed analysis of the Company’s financials and operations.
After the business assessment was completed, Focus Professionals determined that the Company was a viable business and recommended to the Lender to increase their investment by $14MM to fund operations until the sale of the business was completed. The Company filed Chapter 11 in order to expedite a 363 sale.
The Company was led through the 363 sale process and, ultimately, was successfully sold at a significantly higher value than the Lender expected. As a result of Focus involvement, the Lender incurred no losses and was able to fully liquidate their position. Their initial losses of $6MM were fully recovered, as well as their additional investment of $14MM, including interest and fees.