$3 million Behavior Health Medical Practice
The practice’s majority shareholder/President engaged 12|21 FCG to review, analyze and make process recommendations on all accounting and finance matters, as well as day-to-day business operations. This involved improving receivables days outstanding and bad debt write-off percentage, as well as developing daily and weekly process improvements for basic accounting functions and office management. All non-shareholder medical practitioners of the business were hired as 1099 contractors, 12|21 FCG analyzed each practitioner’s contract and revenue produced from that contract to allow ownership to either renegotiate terms at the contracts end or work to resign the practitioner to the same terms on renewal.
12|21 FCG also assisted majority owner in selling twenty five percent of his ownership in the practice by building the valuation model and working with minority owner candidate on final pricing and negotiating payment terms. Additionally, 12|21 FCG had lead role in working as liaison with legal counsel to ensure that the partnership agreement was agreeable to both majority and minority stockholders.
During its continued CFO outsource work, 12|21 FCG helped ownership restructure its debt with a new banking institution and increase its line of credit availability to allow ownerships growth and capital additions plans to occur. These plans included opening new office locations and the purchase of an Electronic Medical Records System. Additionally, all of the property company’s (owned by majority stockholder) building mortgages for the Practice’s offices were refinanced by 12|21 FCG.