Purchasing a company amidst a global pandemic
Our PE fund client had an “Indication of Interest” (IOI) on a healthcare provider operating in the skilled nursing and assisted living facilities space. In light of the Covid-19 global pandemic, the fund needed to understand how the business was changing and, ultimately, the effects these changes were having on the healthcare provider of interest. More pointedly, before our client could move forward with a purchase, they wanted to know if admission rates had changed, if the state and local regulations had shifted the administrative processes, and if there was a decrease in the number of healthcare professionals allowed in the facility. They needed all of these answers in less than two weeks across geographic areas spanning six states.
We first interviewed the PE fund to understand the nuances of its needs and the unique challenges involved with post-transaction efforts to reduce costs. Then we quickly matched these criteria to the pre-vetted candidates from our invitation-only network, rooted in our founder’s 20 years of PE industry experience. Based on our proprietary approach, the PE firm hired a group of resources with the exact plastics market experience they needed, as well as key relationships with manufacturers.
The PE fund selected an independent management consultant with extensive prior experience at a top-tier firm and deep expertise in skilled nursing and assisted living, along with substantial due diligence and survey credentials with other private equity firms targeting healthcare services. The consultant worked quickly within the two- week time frame to produce their required PE-grade deliverables. The information gleaned from the commercial diligence armed the PE fund with the insights they needed to make an informed decision and confidently act on a unique opportunity to acquire the healthcare provider during an otherwise uncertain time.