Case | HBS Case Collection | June 2012 (Revised June 2013)

Home Nursing of North Carolina

by Richard S. Ruback and Royce Yudkoff

Abstract

Ari Medoff's (HBS '11) goal was to control his own professional destiny by owning his own company. His search identified a suitable acquisition in Home Nursing of North Carolina, and he had negotiated a purchase price of $3.5 million, or 4.2x trailing EBITDA. Medoff had completed his due diligence, arranged financing, and completed the legal documents required to complete the acquisition and anticipated closing the transaction in just a few weeks. But then the sellers surprisingly asked to renegotiate the terms of the note they had agreed to early in the acquisition process. Medoff must decide whether to renegotiate the debt or abandon the transaction.

Keywords: Search Funds; Small Companies; Acquisitions; negotiation; valuation; medical services; Negotiation Process; Valuation; Investment; Acquisition; Health Industry;

Citation:

Ruback, Richard S., and Royce Yudkoff. "Home Nursing of North Carolina ." Harvard Business School Case 212-120, June 2012. (Revised June 2013.)