Acute Care Hospitals - 3

Division: Phoenix Management Services


A large for-profit southeast-based operator of approximately one hundred and thirty Acute Care Hospitals with annual revenue of approximately $3.7B.


The Company executed a Letter of Intent (“LOI”) to acquire seven hospitals and a number of separate legal entities from a large not-for-profit hospital operator. The LOI was executed with an anticipated 90 day Transaction timeframe. However, the Company lacked the requisite internal resources to perform an appropriate level of due diligence and calculate the preliminary net working capital (PNWC) associated with the Transaction.


Phoenix was retained to perform the Transaction due diligence and provide strategic advisory counsel to the Company. The acquisition was integrated in the first quarter and immediately produced positive results. We accurately and efficiently calculated PNWC and FNWC which enabled the hospitals’ finance staffs to concentrate their efforts on strengthening their individual operations. The total value of the transaction was in excess of $150M.