EMSI

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Summary

Financial Advisor

Dallas, TX

EMSI, a national provider of medical information services, faced challenges including limited liquidity, declining financial performance, lender negotiations, and debt refinancing. Carl Marks Advisors (CMA) was retained to support the Sponsor and Board of Directors in stabilizing the business and improving financial outcomes.

CMA conducted a comprehensive business assessment, focusing on liquidity management, financial performance improvements, and strategic planning. We worked closely with the CFO to manage liquidity daily, addressed supplier concerns, and implemented profit improvement initiatives.

In addition, CMA helped transition 2/3 of EMSI’s physical locations to a centralized service model, significantly reducing fixed costs. Over the course of the engagement, EMSI improved EBITDA, achieved positive free cash flow, and successfully refinanced senior debt.

Key Challenges
Customer Pricing Pressure
Competitive Market
Limited liquidity
Covenant Defaults

Engagement Highlights

CMA performed a comprehensive business assessment focused on stabilizing liquidity, improving financial performance, developing a multi-year strategic plan.

  • Liquidity: EMSI was challenged by past due AP, nervous suppliers, no available liquidity.
    • CMA worked side‐by‐side with CFO to manage liquidity daily.
  • CMA worked with management to identify a series of profit improvement initiatives and assisted in the execution of $3.5M of EBITDA improvements over plan in the final 7 months of fiscal year.
    • Improvements targeted both cost reductions and revenue enhancements – mostly through the billing of services previously preformed but not billed.
  • CMA also worked with operations to develop a plan to significantly reduce the fixed costs of the business by virtualizing 2/3rds of the company’s physical locations through a centralized service model.

Resolution: Over the tenure of CMA’s engagement, the company significantly increased EBITDA from ($1.8M) the first 6 months to $2.3M+ the last 6 months, generated meaningful positive free cash low and refinanced the existing senior debt.

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