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Validating $24 Million in EBITDA Improvement for a High-Growth Dental Services Organization

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.