New Jersey Funding Company Case Study

 

Problem

AGR Financial has been financing two medical staffing firms specializing in providing nurses to hospitals and other clients. Company A is located in the Southeast and has been in business for a number of years. Company B is located in the Northeast and has been in business for approximately four years.

Analysis

Company A has a number of large hospital clients in its markets and is growing. Its infrastructure has been in place for some time and functions well. It has considerable depth in management both in-house and through an outside investor. Company B was formed and is managed by a nurse who is excellent at getting customers and recruiting nurses. She can talk the talk and walk the walk and it shows in their growth.

Solution

Company A is in one regional market where it has excellent connections in the hospital community. It would like to grow and move into other markets. Company B has a poor, disorganized infrastructure that causes it continuing problems in billing and other support areas. Its owner has tried twice to solve this problem by bringing in partners, but it has not worked.

AGR Financial introduced the companies since it appeared the needs of each could be supplemented by the other. The question, would the chemistry work?

Result

The companies merged into a more successful, larger firm. Revenues were up and the costs were down with the consolidation of the back offices. Being in two major markets rather than one strengthened the opportunity for growth. It also reduced risk and added financial stability through a larger customer base in two separate markets.

 

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