$75 Million Saved for PE-Backed Health Organization
December 22, 2023
Through interim management support, FTI Consulting helped a private equity-owned behavioral health organization achieve significant cost reductions and successfully complete its sales process.
After undergoing a merger, a leading private equity-owned behavioral health organization suffered operational issues stemming from management’s focus on growth rather than operations. On track to significantly miss its financial plan targets, the organization replaced nearly its entire executive team with new leadership tasked to fix the operational issues and accelerate growth. The equity sponsors positioned the organization for a sale and engaged FTI Consulting to provide interim management support during the sales process.
- FTI Consulting was retained as the organization’s interim CFO and senior vice president of financial planning and analysis (“FP&A”) and supported the expansion of the FP&A function.
- FTI Consulting’s Office of CFO Solutions (“OCFO”) team led the finance function through the sales process and implemented a rigorous cost savings plan to get the organization on track to achieve its financial targets, and assisted with cash flow forecasting and liquidity management.
- The OCFO team built a detailed profitability model to allocate shared service costs across the entire business to understand profitability per client, this also established a formal partnership structure to provide business operators with finance partners to drive key strategic initiatives and improve financial performance and transparency.