HEALTHCARE SERVICES

Outpatient Rehabilitation Facilities
Wyatt Matas & Associates advised an Illinois-based healthcare services firm in the divestiture of their seven outpatient rehabilitation facilities. Wyatt Matas & Associates assisted the company in using the proceeds of the divestiture to acquire three home healthcare agencies in two states.

Home Healthcare Companies
A not-for-profit Medicare and private duty home healthcare agency based in Michigan selected Wyatt Matas & Associates to advise their board on an exit strategy. Our role was to determine whether proceeds from a transaction would be put to better use in a foundation. The agency had a sizable fund balance, but was loosing money because of increasing competition and high overhead. However, they still had a sizable market share and the best reputation in the state, according to independent referral source research. It was determined that turning the agency around would be a significant and costly challenge for the current management and an exit was the best option. Because of the mission of the not-for-profit, the board had very specific buyer criteria. Therefore, despite the fact that they were losing money, the board rejected what would be considered market premiums from multiple buyers and picked an individual buyer whose philosophies aligned more closely with that of the not-for-profit. The transaction was successfully consummated and the foundation was established.

~~~~~

Wyatt Matas & Associates was contacted, independently, by two home healthcare agencies in the same market about selling their businesses. While the two agencies knew each other and had corporate offices in the same city, they had avoided each other and opened branch offices in opposite directions as they expanded in the state. Wyatt Matas & Associates broached the sensitive subjected with each owner about combining the agencies and going to market together, which would bring a higher market valuation. Each owner eagerly accepted this concept, and Wyatt Matas & Associates began modeling the integration plan. Prior to going to market, it became clear that companies had the neither capacity nor management expertise to bring two large companies together, and it would take a qualified acquirer to integrate the two. While this did take away from the market premium the two would receive from going to market together, we advised the clients that a slightly lower valuation was better than putting both companies at risk. At the same time, we were still able to show, even after discounting for the integration risk, a higher valuation than if they were to go to market separately. Ultimately, Wyatt Matas & Associates did find an individual financial buyer looking for a home healthcare platform that he could build upon. This was a perfect fit for him and the sellers.

~~~~~

Wyatt Matas & Associates was selected to advise an $18 million home healthcare company on developing the capital structure to acquire multiple home healthcare agencies across the Mid-Atlantic. On behalf of the company, Wyatt Matas & Associates managed the acquisition of four home healthcare agencies and one hospice agency over the course of 18 months.

~~~~~

A Michigan-based home healthcare agency contacted Wyatt Matas & Associates to assist the company in identifying a strategic capital partner that would allow for a liquidity event for the owner, but also allow him to remain as an operating partner. Wyatt Matas & Associates used its relationships in the private equity arena to advise the company's owner in the selling of 75 percent of the equity in his business, while remaining president of the company.