Case Studies

Profit Improvements for Assisted Living Facilities

J.S. Held Acquires GLI Advisors, Strengthening Our Construction Project Support Services in the Western US and Hawaii

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Home·Profit Improvements for Assisted Living Facilities

The Situation

Assisted Living Facilities. 25 locations. $120 million in sales. $60 million debt.

  • The assisted living facilities were midway through various capital expenditure projects when the economic slowdown began.
  • $59 million of mortgage debt outstanding, with $19 million due within 2 years.
  • $37 million of Long-Term Debt Obligations.
  • Free cash flow from operations of $6 million did not cover $16 million of annual debt service.

How We Advised

Our experts met with senior management to understand significant developments and existing initiatives aimed at improving financial performance while reducing financial leverage.

  • Improved sales mix and reimbursement rates to increase profitability.
  • Negotiated with mortgage lenders and debt holders to extend terms and defer payments.
  • Explored the sale of real estate to investors.
  • Ceased dividend payments to investors.
  • Replaced TIC investors and refinance with SBA.
  • Increased Net Patient Revenue by 7.6%.
  • Managed the application and compliance process to refinance.
  • Investors allowed the company to refinance by escrowing funds.

Key Contact

Dan F. Dooley, CTP 
Senior Managing Director 
Strategic Advisory Practice 
+1 603 660 8952 
[email protected] 

Related Practice Areas

> Operational Performance Improvement 
We leverage extensive experience to serve as a partner to organizations to implement the appropriate operational steps to grow their business and create enterprise value. Our experts have diverse backgrounds and are expert problem solvers. We rapidly assess a situation, develop a holistic solution, and execute efficiently with purpose.

 

> Investor Solutions and Corporate Performance Improvement 
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