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Case Study: Dot-com Roll-up
Operational Restructuring, Sale of Businesses
Company: $42 million roll-up of five health care information dot-com companies.
Situation / Tasks Performed: In the dot-com frenzy several healthcare information businesses were bought
by a formerly "bricks and mortar-type" buyer in an attempt to leverage the cross-selling possibilities that were thought to exist
among these separate entities. The Company was in the midst of implementing strategies to take advantage of the roll-up's synergistic
opportunities when the market dramatically changed in the dot-com sector. The Company began to experience significant cash deficiencies.
TRG was hired to work with management to implement an operational restructuring plan while attempting to find a buyer for the Company in its entirety
or in separate pieces. TRG assisted in developing the restructuring plan, provided vendor management services and worked closely with the
Bank in exploring short-term and long-tern solutions to the Company's problems.
Results: The Company's stock plummeted and was delisted. A buyer for pieces of the Company was eventually found but
at a price significantly discounted from that which the Company had paid during the peak of dot-com investing activity.
Nature of Assignment:
Primary: Operational Restructuring
Secondary: Sale of Businesses
Industry: Education
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