Overview of Project
A break-through healthcare service concept had outgrown its initial capital structure, which resulted in a severe cash shortage. Manchester was engaged by management to conduct a valuation, restructure the balance sheet, and raise new capital. Our client is now funded to implement a national expansion strategy, gaining national attention as a model for the future of the healthcare industry.
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The Challenge
Our client is a privately held company providing healthcare services via kiosk-style locations in select supermarkets, discount stores, and corporate sites and had reached $5 million of revenue. When Manchester was engaged, the client had reached critical mass with nine units in the Minneapolis metro area, outgrowing its initial capital structure and experiencing a severe cash shortage. Our client was evaluating whether it should shut down operations temporarily or scale back to minimal operations. It had recently failed in its attempts to secure new financing due to an unrealistic valuation, management issues, and a strategy that could not be financed.
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The Engagement
Manchester was engaged to conduct a valuation, restructure the balance sheet, and raise new capital.
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The Solution
Manchester conducted a reasonable valuation that was used to raise new capital and restructure the balance sheet. We targeted and attracted suitable institutional investors, resulting in successfully raising and closing $2.8 million in new equity within four months.
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The Impact
As a result of its new capital structure, client was able to implement a national expansion strategy. Currently, our client is a healthy growing company gaining a national reputation for providing futuristic healthcare services.
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