The U.S. healthcare system is going through an unprecedented period of dislocation as private and public stakeholders attempt to reform the disjointed network of providers, support services, manufacturers, suppliers, insurers, and pharmaceutical companies.
Companies can expect a highly competitive, scrutinized and cost-conscious environment to continue to intensify. Lenders can expect their borrowers to deal with reduced profitability, prolonged workouts, and potential requests for additional liquidity. For lenders, the prospect of having to support borrowers as they adjust to the changing competitive landscape will remain a key point of contention.
The unique Carl Marks Advisors’ platform utilizes small teams of experienced professionals to seamlessly help clients tackle operational challenges and achieve favorable solutions. Carl Marks Advisors’ Healthcare practice has worked with owners, operators, and management teams to resolve short-term challenges and reposition companies for long-term successes.
As advisors, we get deals done by building consensus. We represent stakeholders across the capital structure, from equity holders, to senior lender(s), and junior creditors, giving us insight into what motivates each constituent in order to structure successful deals.
We work with clients in the healthcare industry to provide critical leadership in times of turnover and uncertainty, assess and develop key profitability metrics, plan upcoming forecasts and budgets, and implement functioning control environments that reduce the risk of CMS audits. We work closely and collaboratively with management teams to maximize and accelerate results.
While the scope of our services is customized to fit the needs of each client, our work for healthcare companies can include the following:
- Strategic Planning – We work with organizations to assess current performance and operations, investigate alternatives, and evaluate business risks to create go-forward strategies with tactical implementation plans.
- Revenue Enhancement –Our team helps companies better understand top-line performance by developing results-oriented customer, channel, and product strategies.
- Margin Management – We leverage our experience to analyze existing margins by successfully optimizing the sales mix to maximize profitability and identify opportunities to leverage pricing, SKU rationalization, and cost engineering.
- Cost Reduction Initiatives – Carl Marks Advisors supports management by assessing existing cost structures, identifying potential fixed and variable cost reductions, and implementing changes to achieve savings.
- Liquidity Improvements – We work with organizations to establish detailed inventory policies by tightening the cash conversion cycle, reducing working capital investment, and freeing up cash.
- M&A Activity – We advise companies on asset and company sales, and change of control situations.
- Interim Management – Our team can step in to fill senior management positions in times of operational instability with seasoned CEO, COO, and CFO professionals, and provide support to management to augment their capabilities.
- Debt Restructurings – Our professionals assess balance sheet restructurings and provide baseline operational models to support reorganizations.
- Transaction Advisory and Due Diligence – We review and analyze potential transactions by developing M&A strategies, identifying target acquisitions, and defining acquisition criteria. We also assist with divestitures of subsidiaries or business units.