CareMatrix considers going private.The board of directors of CareMatrix Corporation, a Needham, Massachusetts-based assisted living as·sist·ed living n. A living arrangement in which people with special needs, especially older people with disabilities, reside in a facility that provides help with everyday tasks such as bathing, dressing, and taking medication. company, has instructed management to explore entering into a leveraged recapitalization Leveraged Recapitalization A strategy where a company takes on significant additional debt with the purpose of either paying a large dividend or repurchasing shares. The result is a far more financially leveraged company. Notes: This is often used in risk arbitrage. or other strategic alterative Alterative A medicinal substance that acts gradually to nourish and improve the system. Mentioned in: Echinacea alterative, n a class of herbs with several different but related functions. to maximize shareholder value. Board member Donald Amaral has been engaged by the company as a consultant to help identify strategic alternatives. CareMatrix Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Abraham Gosman said in a prepared statement that the "current valuation of the assisted living sector may indicate that it would be more conducive for CareMatrix to be a private company rather than being in the public market at this time. We expect to identify an investment banker Investment Banker A person representing a financial institution that is in the business of raising capital for corporations and municipalities. Notes: An investment banker may not accept deposits or make commercial loans. to work with us in this process." CareMatrix's stock, which is trading at less than $9 a share, is down 71 percent year-to-date following critical government reports about quality of care and consumer protection issues at assisted living facilities, and investor fears the industry may be overbuilt o·ver·build v. o·ver·built , o·ver·build·ing, o·ver·builds v.tr. 1. To build over or on top of. 2. To construct more buildings in (an area) than necessary. 3. . Gosman sold CareMatrix for about $250 million in stock three years ago to Standish Care Co. His plan for a management-led buyout is reminiscent of the sale, repurchase, and resale of Mediplex Group Inc., the nursing home concern he built. Such maneuvers resulted in Gosman's net worth soaring to an estimated $480 million in 1996. But Gosman has lost millions in recent years due to hard times at two of his other business ventures: Meditrust, a real estate investment trust, and PhyMatrix Corp., a physician practice management company. |
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