Abraxas Group Founding Partner David Johnson, serving in the role of Interim Chief Operating Officer, led the successful turnaround and restructuring of a Chicago-area Behavioral Healthcare Company active in adolescent residential treatment, adoption, clinical services and foster care.
The turnaround featured the orderly wind-down of two lines of business and the reorganization of the company’s Shared Services functions. Due to the rightsized cost structure, the company is on track for a 6x year over year increase in EBITDA.
The restructuring featured a $10 million refinancing (including $2.5 million of new money), negotiation of deferred payment terms on $4 million of critical vendor payables, and the sale of numerous properties.
“This was 100% a team effort, and I was proud to be a catalyst and lead from the front with this great team of people” said founding partner David Johnson.
Abraxas Group LLC is a boutique advisory firm focused on providing transformational leadership to middle market companies in transition.