Background:
Quorum Health Corporation is a national, investor-owned operator of acute care hospitals. Following Quorum’s spin-out from Community Health Services, Quorum retained Warbird’s M&A advisory team to assist Quorum with its strategic divestiture efforts. The client selected the Warbird M&A team to broadly market the selected hospital assets due to their extensive contacts and relationship capital with qualified national buyers and regional strategic operators.
Areas of Focus:
Sell-side Representation. The Warbird M&A team was assigned specific assets to market to potential strategic buyers. Offering memoranda were written and shared confidentially with selectively sourced and qualified buyers. Among other things, the offering memoranda highlighted the hospitals’ unique strategic value, historical and pro forma operating results, medical staff composition, local market dynamics and opportunities for service line expansion.
Deal Negotiation and Transaction Process Management. For each marketed hospital, the Warbird team negotiated the initial terms of a non-binding Letter of Intent, the finer points of the definitive agreements, and facilitated due diligence efforts. For each facility, the Warbird team focused primarily on regional strategic buyers who understood the strategic value of incorporating the select hospitals into their regional service areas. Successful bidders entered into non-binding LOIs in order to proceed with detailed due diligence. The Warbird team facilitated access to requested due diligence materials and coordinated client responses and follow on requests from bidders. Additionally, the Warbird professionals served as negotiators for Quorum concerning key deal points between buyers, the client and each party’s transaction counsel.
Conclusion:
The Warbird M&A team successfully marketed and sold several hospital assets to well qualified buyers – resulting in approximately $50M of net proceeds.