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Case Study: Home Health Care Supplier
Creditor and Vendor Management
Services
Company: $250 million supplier of home health care supplies and services in the Midwest and Northeast.
Situation / Tasks Performed: The Company was formed in the 1990's as a leveraged buy-out involving a bank-backed equity sponsor. The Company grew rapidly through the purchase of independent stand-alone home health care service providers. This rapid growth led to a heavy investment in inventories, people and property that outstripped the Company's equity and available bank credit. TRG was engaged by the Company to teach trade credit expansion strategies and manage creditors that were no longer core to the business while management was engaged in streamlining operations and trying to raise additional equity.
Results: When TRG's engagement was complete, the Company was close to obtaining an equity infusion and management continued to work with creditors. Creditor compromises to date have resulted in approximately $350,000 in cash and income statement savings.
Nature of Assignment:
Primary: Creditor and Vendor Management
Services
Industry: Health Care; Social Assistance
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