Closed $11.150 million refinance for NJ based DSO including $4 million LOC for acquisitions
Southeast based DSO (200+ locations)
We were tasked to complete a global refinance of more than $20 million in senior debt. Our analysis revealed a west coast component that was losing an excess of $1 million per month. We suggested the immediate sale of the west coast locations. Our clients informed us that they had spent the previous 5 years, and a considerable amount of capital, complying with due diligence requests by the potential buyers. After which, the prospective buyers passed on the purchase.
We were eventually given the lead to facilitate the sale the west coast locations. Within 5 days, we had signed Letters of Intent on 86% of the locations. The first set of closings, of less than half of the locations under LOI, netted the client more than 2 times the amount the previous suitor took a pass on for the entire regional operation.
Northeast DSO (currently 10+ locations)
We were brought into a 6-unit operation to facilitate growth. We engaged the assignment in May. We closed the year at 13 locations with another 12 under LOI. Further, we were able to negotiate a five-unit purchase with a 5% down payment, seller held debt, and 6 units structured as an equity conversion.
Southeast DSO (175+ locations)
We were brought in to provide a funding platform for Associate Equity Buy-Ins. The client had been self-funding the Associate Buy-Ins at that point. We arranged third party funding as a personal loan to the Associates. This did not require a lien on the assets of the DSO and provided 100% payout at closing.
West Coast DSO (25+ locations)
We created a digital marketing platform, as requested, for the sale of the operation. We represented our client to multiple Private Equity Groups nationwide. In reviewing the Analytics and recommending strategic operational shifts we demonstrated to our client that, by continuing the trend, it made it more advantageous and profitable to keep the offices and continue to grow. The client decided to put off the sale. The client was making more money while positioning towards a future sale at a potentially higher multiple based on increasing Net Operating Income.
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Having information and knowing what to do with it is DYNAMICALLY IMPACTFUL!