This case study details our firm’s strategic approach to acquisitions and operational management across the healthcare and cannabis sectors. Highlighting a playbook that has been refined through the successful execution of multiple high-profile deals, this narrative focuses on a particularly transformative acquisition—a primary care practice that was turned from a financial liability into a profitable entity. This story showcases our expertise in due diligence, staffing optimization, and seamless operational integration.

Our engagements have spanned acquisitions with revenues ranging from $1 million to $30 million, crafting a path of learning and adaptation that led to the creation of a comprehensive playbook. Drawing from a wealth of experience in managing acquisitions across a diverse range of revenues and operational challenges, we have distilled our insights into a comprehensive playbook.

This playbook is the cornerstone of our strategy, encapsulating the essence of our analytical prowess and operational dexterity. It covers all facets of the acquisition process: from due diligence, financial analysis, and strategic planning to the nuanced integration of finance, accounting, HR systems, and scaling of essential infrastructure. This tool enables us to swiftly identify opportunities, devise effective strategies, and execute integration plans that ensure seamless transition and scalability.

A standout in our portfolio of acquisitions is the purchase of a primary care practice with a staggering $30 million in revenue, which we acquired for a mere $12 million. This transaction was particularly noteworthy due to the precarious financial situation of the company at the time of acquisition, having recently emerged from bankruptcy with a negative $7 million EBITDA. Our comprehensive due diligence process was pivotal in identifying the root causes of the company’s financial woes and crafting a strategic plan for its revival.

This also expedited the client’s milestones that were promised in the capital market.

Strategic Restructuring and Integration

Our approach to turning around this acquisition was multi-faceted, focusing on key areas of operational inefficiency:

• Comprehensive Due Diligence: Our in-house team conducted an exhaustive analysis, identifying critical issues that spanned across departments. This process was instrumental in revealing the nuanced challenges that interconnected HR and finance, particularly how staffing overheads significantly burdened the company’s finances.
• Optimized Staffing Strategy: Addressing the staffing surplus was done with a keen focus on maintaining operational integrity and ethical considerations. Through a carefully managed re-training program, we managed to reduce the staff count by 30-40%, thereby aligning staffing levels with the operational needs of the company. This step was crucial in lowering operational costs while enhancing productivity through the adoption of advanced technology and management consulting methodologies.
• Seamless Operational Integration: The integration process was meticulously planned, ensuring that departments such as HR, payroll, finance, and accounting were not just merged but optimized to function within Skylight’s centralized ecosystem. This strategic consolidation was aimed at leveraging economies of scale, enhancing the efficiency of business processes, and creating a unified operational framework.

Turning Breakeven

The targeted primary care practice was quickly transformed from a state of financial distress to a breakeven status within six to eight months post-acquisition. This rapid turnaround was a direct result of our strategic interventions, which were informed by our comprehensive due diligence and executed through our playbook.

Delivering on Key Changes

The implementation of key changes, particularly in staffing and operational integration, was pivotal in altering the financial trajectory of the acquired practice. These changes were not just about cutting costs but strategically realigning resources to better serve the company’s long-term goals.

Achieving Net Positive

The ultimate achievement was the transition of the practice to a net positive financial status. This success story not only highlights the effectiveness of our strategic approach but also showcases our commitment to sustainable growth and profitability.

• Unmatched Expertise and Vision: Our journey through managing diverse and complex deals has solidified our position as industry leaders, capable of navigating through challenging acquisitions and turning them into successful enterprises.
• Innovative Strategic Playbook: The development and application of our acquisition playbook underscore our ability to rapidly and effectively analyze, strategize, and implement comprehensive operational, financial, and HR integration strategies. This playbook has proven to be an invaluable tool in scaling and optimizing the operations of acquired entities.
• Commitment to Ethical Restructuring: The focus on ethical restructuring and workforce management has been a hallmark of our approach, ensuring that operational efficiency improvements are achieved without compromising on our core values and responsibilities towards our employees.

This expanded case study encapsulates our firm’s strategic depth, operational excellence, and ethical approach to the acquisition and restructuring of businesses. Through our sophisticated playbook and the experienced leadership at the helm, we have consistently achieved successful integrations and turnarounds. Our journey not only highlights our commitment to efficiency, profitability, and sustainable growth but also positions us as a beacon of strategic acumen in the fast-evolving landscapes of the healthcare and cannabis sectors. Each acquisition is viewed not merely as a transaction but as an opportunity for growth, innovation, and long-term success.