One of the most valuable attributes of the Oaklyn Consulting model is our ability to align the efforts of a project with the unique needs of each client. Such was the case in a recently completed engagement with SilverSage Physician Services, a rapidly growing company providing outsourced physician services to post-acute and long-term care facilities across the country.
SETTING THE STAGE:
Though this stand-alone company was only 18 months old when Oaklyn became involved, the founder had previously taken the same unique service offering from concept to 100+ facilities and tens of millions in revenue as a subsidiary of a much larger entity. Shortly after setting off on his own, the client found himself facing several issues and concerns:
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The high salaries of physicians along with a natural lag in reimbursement from insurers combined to create a sizeable, albeit temporary, working capital need for each new contract – requiring liquidity the firm did not have
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The founder was (rightly) resistant to raise equity capital and experience dilution for such a temporary need
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To meet the timeline of previously signed contracts, SilverSage had just 45 days to secure an initial amount of funding and needed a partner who could “run fast”
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Long-term, SilverSage sought a banking relationship that could grow with them
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The client found it easy to gain initial banker interest, but for reasons that were unclear, they found it difficult to gain traction beyond the first interaction
OAKLYN CONSULTING’S ROLE:
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We quickly found that the issue with banks was a matter of not speaking the same language. The client was simply having difficulty translating the compelling business opportunity into a financial model that articulated the same story
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Armed with the requisite information, we helped the client run what closely resembled a growth equity capital raise process, but for bank financing and on a highly accelerated timeline
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We advised the client on the selection of the best short-term debt solution, and teed up the client to continue pursuing the desired long-term banking partnership
SilverSage Physician Services had a proven business model and a stockpile of potential clients – they were the right people for the job. But like many business owners looking to grow rapidly for the first time, they didn’t have a strong enough handle on how to support their operational ambition with a thoughtful financing strategy. The “need” in this case was simply the perspective of a financially-savvy partner who had been there before – with companies their size, with companies financing rapid growth, and with companies the likes of which they aspired to become