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Validating $24 Million in EBITDA Improvement for a High-Growth Dental Services Organization
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6 septembre 2024
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FTI Consulting was engaged by a senior lender group to assess the financial position, liquidity and performance opportunities for a dental services organization (“DSO”) experiencing liquidity challenges and debt servicing issues. Following the evaluation, our experts validated approximately $24 million in EBITDA improvement opportunities.
Our Impact
- FTI Consulting validated approximately $20 million in EBITDA improvement opportunities related to central business function activities, including write-off reductions and “usual and customary rate” (“UCR”) increase initiatives.
- Our team found drivers of negative financial performance and conducted multi-scenario sensitivity analyses to estimate the client’s liquidity needs.
- The final workstream identified EBITDA opportunities of approximately $4 million with changes to the staffing model and office consolidations.
- Our experts developed a prioritized list of short- and long-term recommendations and estimated cash impacts based on areas of opportunity within each workstream.
Our Role
- FTI Consulting performed a comprehensive assessment of the client by collecting and reviewing company data, holding on-site and virtual interviews with key stakeholders and preparing findings and recommendations for the DSO’s leadership team.
- Our experts focused on validation of financial forecasts, business plans and longer-term cash flow projections, in addition to analyzing performance improvement opportunities, staffing plans by specialty and practice location, and determining the impact of existing initiatives on practice operations.
- The team also evaluated the DSO’s reorganization plan and its operational impact to assess additional plans targeted directly at centralized functions of the company.
- Our experts evaluated the feasibility and efficacy of existing improvement plans and de novo analyses, including the likelihood of achieving a substantial positive EBITDA, and analyzed initiatives to identify opportunities for improved financial and operational performance.
Related Information
Date
6 septembre 2024
Contacts
Senior Managing Director, Leader of Healthcare Business Transformation
Senior Managing Director, Co-Leader of Healthcare Restructuring
Senior Managing Director