Parkview Health Services was a leading institutional “closed door” pharmacy that provided pharmaceutical products to long-term care agencies, which included assisted living facilities, developmentally disabled residences, chemical dependency rehabilitation facilities, group homes, and mental health clinics.
Situation at the Time of The Anderson Group’s Investment: Parkview operated with an over-levered balance sheet and sizable interest expense, restricting the company’s ability to purchase inventory cost-effectively, as a result margins and profitability were depressed, preventing the company from investing the capital required to execute on growth opportunities.
Anderson Value Add: Anderson worked with the company’s owners and lenders to acquire the business via an out-of-court restructuring and accomplished the following:
- Navigated a strict regulatory environment to facilitate an expedited closing.
- Established an aggressive marketing campaign, expanding the company’s services, capabilities, and geographic footprint.
- Acquired two local competitors and launched ancillary product lines.
- Built a new state-of-the-art Headquarters facility to provide for future growth.
Outcome: As a result, Parkview experienced exponential sales and profit growth (greater than 10x) and was sold to an investment group for a 25x return on investment.
Management:
