Pharmaceutical Alternatives, Inc.
This Ohio based home infusion and specialty pharmaceutical company was founded in 1987 to service Ohio and surrounding states that were not being efficiently serviced by other national home infusion companies. The company grew to over $32mm in sales in 2007 and was on track for $35mm in 2008.
In July 2006, the company proceeded with litigation against a large insurance company resulting in a huge strain on cash flow as the insurance company stopped paying on submitted claims. Eventually patients had to be off-loaded and the company filed Chapter 11 to allow time to reorganize. Continued cash flow restraints forced creditors to convert the company to Chapter 7, and a trustee was appointed to close down the company and oversee disposition of the assets.
Equity Partners was retained by the bankruptcy trustee to try to find a going concern buyer for the company as the value of the hard assets had little to no liquidation value.
Equity Partners quickly generated several offers that would reopen the company and allow it to operate as a going concern. Through intense negotiations, the highest value for the company was achieved and the business was sold to a strategic buyer. The company’s management team and employees were rehired, and the business was able to restart operations.