Restructuring specialist Revitalization Partners completed the sale of a south Seattle medical clinic it has operated as court-appointed receiver since May. The order formalizing the sale, assumption and assignment of all assets was approved in King County Superior Court on Nov. 9.
The buyer was not disclosed, nor were specific financial terms of the deal. In approving the sale, the court agreed with the receiver’s statement that the transaction value was near the highest level of a best-case scenario and that the buyer possessed the financial wherewithal to successfully purchase the company.
Prior to Revitalization Partners’ appointment, continuing operational disputes between the clinic’s former principals created significant financial pressures on the business, threatening its ability to keep its doors open. Declining revenues, deficiencies in billing/collection procedures and high staff turnover only added to the duress.
After completing a series of forensic evaluations on equipment asset values, real estate, and financial projections, Revitalization Partners made operational changes needed to sell the healthcare practice as a going concern and maximize its value. The firm capped those initiatives by designing a bidding process that resulted in multiple bids before ultimately selecting the highest, most qualified offer.
Al Davis, principal at Revitalization Partners, complimented the firm’s lead receiver, Kern Gillette, for his expert handling of the issues involved.
“Kern’s C-suite experience helped us navigate a number of major operational challenges that could have derailed the sales process, Davis said. “His ability to do that in a relatively short period of time created significant value for all stakeholders involved, particularly creditors.”
