Turnaround - Health Care Services

Opportunity

A health care services firm was in business for about 10 years and was finally getting close to profitability, until reimbursement rates got cut nearly 70%.  We came in at this later stage in an interim CFO role. 

Action

We improved the flow of working capital and helped cut costs, such as closing a number of service locations in remote states.  This reduced the cash burn significantly while the investors evaluated the next steps. 

Result

Since they had been in the investment so long and it would take a dramatic shift to new markets, they decided instead to sell the company.  The investors were glad we helped cut the down-stroke and buy time.  They wished they had brought us into the company much sooner.