Pritok helps Providence Healthcare Expands is Operations
“Providence Healthcare, a regional operator in Ohio, engaged Pritok to purchase one of our facilities. Although the facility didn’t meet Pritok’s purchase criteria, the Pritok team was dedicated to helping us meet our goals.
With Pritok Providence was able to free up additional capital to purchase another turnaround facility. This was accomplished by Pritok purchasing one of our existing facilities as a sale/leaseback with a very realistic purchase option terms after only 7 years.
We were able to purchase the turnaround property in turn further expanding our operations. We maintained control of all of our facilities and obtained optimal capital structure. The entire transaction was completed within 3 months from initial conversation.”
Providence Healthcare – Ohio
Another Growth Story with Pritok
A regional operator, had approached Pritok Capital having identified a 100 bed Skilled Nursing Facility in West Virginia he wanted to acquire. The purchase price made sense based on the facility’s history of stable cash flows, but was too high for most lenders’ comfort. Pritok Capital expediently purchased the facility and leased it to the operator with a defined Purchase Option available in Year 3 after acquisition. 2 years after Closing, 1 year before Purchase Option was due to be made available, the operator needed urgently to exercise the Purchase Option. Pritok Capital was flexible in negotiating conditions for early exercise of the Purchase Option enabling the operator to take over ownership early in order to meet its newly emerged need.
Regional Operator – Midwest
Independent Owner sells to Pritok, Quality of Care Continues:
“As co-owner and Administrator of a Medicare Certified Minnesota Nursing Home and on campus Housing with Services/Home Health Agency(Assisted Living), and after thirty seven years on site, I desired to retire. The campus was listed and we were put in touch with Max Stesel of Pritok Capital.
After a very timely tour and site evaluation, our price was agreed.
During due diligence inconsistencies in Accounts Receivable Aging were discovered. My concern about the sale was relieved when Pritok Capital kept an open mind and patiently worked with us, to reconcile the carry forward of balances from old to new software; and a separate software glitch. I really appreciated the close cooperation and attitude of Pritok Capital and their due diligence personnel.
Two months prior to closing the Assisted Living occupancy dropped significantly. Pritok did not ask for a price adjustment. They displayed an attitude of “these things happen”, and performed as they said they would. The sale occurred June 1st, 2013.
I continue to keep in contact with my former employees and facility management team and they are providing great care with good survey results. Staff have great attitude and are happy with the new operators. “
Worthington – Minnesota