Physiotherapy Associates

Revenue recognition issues, economic pressures, and healthcare market changes, such as Medicare MPPR reductions and increased managed care, led to financial restatements, covenant violations, and operational challenges.

Carl Marks Advisors (CMA) provided dual-track support, combining operational advisory and investment banking services. The team conducted a comprehensive assessment, including a business line and regional analysis, and reviewed key revenue drivers like patient visits, reimbursement rates, and payor mix. They also monitored liquidity, evaluated operations at the store level, and recommended cost-saving measures.

CMA’s efforts facilitated negotiations with the company and bondholders, resulting in bondholders purchasing bank debt at full value, ensuring complete recovery for the senior lenders.