We were engaged to provide restructuring consulting services related to a large private equity-backed dermatology platform that defaulted on a loan. Following the missed loan payment, the lender took control of the platform and engaged us to consult on the restructuring.

We designed a new compensation plan for the providers at the platform and helped design and value management incentive units and synthetic equity securities to be distributed to management and providers. Our analysis included the use of several derivative valuation models, including the Black-Scholes model and the probability weighted expected return method.