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Case Study

Healthcare Real Estate 

A healthcare operating company with 70 facilities embarked on a strategic growth plan to increase the company size by 50% through acquisitions. However, the existing $30 million line of credit was insufficient to handle this growth, and new financing was required. Tom Patterson was engaged as the CFO to help secure the required financing.

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Tom Patterson
Partner

Tom Patterson is a financial executive with over three decades of experience in an array of industries. He has broad expertise in finance, accounting, strategy, and mergers and acquisitions. Tom has a significant background in complex business transactions, having served as the CFO and Chief Administrative Officer at two industry-leading organizations in healthcare and real estate. He strives to be collaborative and promote teamwork and communication throughout organizations  he serves, generating value by partnering with operations to achieve measurable performance improvement.

Solutions

Tom created, led, developed, and executed several key initiatives to help reach a successful resolution, which included:
 

  • Prepared pro forma financial statements for each of the acquisition targets, along with consolidated cash projections to demonstrate the potential revenues and cash flows of the company following the acquisitions.
     

  • Led the acquisition analysis and due diligence process for the proposed acquisitions, estimating the financing need to be approximately $80 million.
     

  • Contacted the incumbent bank to gauge their interest in providing additional financing and approached three other banks to gauge their level of interest, receiving financing term sheets from the incumbent bank and 2 others.
     

  • The other banks required, as a condition of providing the financing, that all bank accounts and treasury management services be transferred to their bank. The company wanted to avoid this since they had a strong treasury management relationship with another bank and did not want to move their 150+ accounts. So, Tom negotiated with the incumbent bank to allow the treasury management relationship to remain at the existing bank, however, the incumbent bank would only lend 60% of the required financing.

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Results

  • Tom led the company to close an $85 million line of credit using 3 banks. The incumbent served as the lead bank for approximately 60% of the debt and enlisted in 2 participant banks for the remainder. 
     

  • The company used the new line of credit to finance the acquisition of more than 30 facilities over a 12-month period of time, effectively realizing its strategic growth plan.

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