Contingency planning for home-based health provider

Growth Stage, PE-backed, chronic care management provider

When investor disputes threatened to sink a growing startup, Gibbins Advisors crafted a wind-down contingency plan, steered negotiations, and helped secure fresh capital — keeping the business alive.

TEAM Ronald Winters, Clare Moylan, Paul Storey, David Legg

Population Health PE-backed 100,000+ covered lives Company Advisor Wind-down

Situation Overview

A promising growth-stage health provider with a transformational care delivery model faced significant operating losses that required ongoing capital infusions. When a planned capital restructuring was blocked by an early investor, the company risked running out of liquidity and being forced to cease its operations.

Images are for illustrative purposes only.

Summary

Sector:
Home-based chronic care management

Approx. Size:
100,000+ covered lives

Our role:
Financial Advisor to the Company

Key Results

• Developed a fallback wind-down plan in case negotiations broke down

• Aligned stakeholders on a viable go-forward restructuring plan

• Secured new growth capital

• Avoided business closure

Role

Gibbins Advisors was engaged to evaluate liquidity, develop a contingency wind-down plan, and guide management through complex negotiations with various investors to avoid possible collapse.

Approach

Gibbins Advisors worked closely with management to understand the key pain points in the investor negotiation and the liquidity runway available. We developed a detailed operational wind-down plan and built financial models to test potential outcomes. At the same time, we facilitated difficult investor discussions, providing independent analysis and developing creative options to guide stakeholders toward alignment.

Key Accomplishments

1. Developed an implementation-ready wind-down plan to facilitate a quick, but orderly wind down of patient care. Fortunately, the wind down plan was never used due to successful investor negotiations.

2. Guided investor negotiations, breaking deadlock and aligning stakeholders.

3. The company successfully restructured its capital structure and secured growth financing for its next phase, thereby avoiding an emergency closure.