Financial Advisor

Dallas, TX

EMSI is a leading, national provider of medical information services, including in-home phlebotomy and specimen collections for clinical research, medical evaluations and analytics for health plans, paramedical exams and medical records retrieval for insurance carriers, and drug-testing collections for employers.

Carl Marks Advisors was retained to advise the Sponsor and Board of Directors through the following challenges; 1) Limited liquidity; 2) Declining financial performance; 3) lender negotiations and 4) debt refinancing support.

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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