Here are six things to know.
1. The potential strategic alternatives are focused on maximizing shareholder value, according to a news release.
2. New potential strategies noted in the release include, among other things, changes in the company’s operations, and strategic transactions such as a separation or the sale of part or all of the company..
3. The Advisory Board Company’s exploration of strategic alternatives comes roughly a month after the company announced plans to restructure its healthcare business to focus on improving three specific problem areas for hospitals and health systems. The restructuring plan is designed to focus the company’s healthcare technology and consulting capabilities on driving health system growth, reducing care variation and optimizing the revenue cycle.
4. Commenting on the exploration of strategic alternatives, the company’s chairman and CEO, Robert Musslewhite, said in the release: “Our board of directors is committed to enhancing value for our shareholders, and this review is an important next step following the comprehensive restructuring initiatives we announced earlier this year. While we conduct this review, we will remain focused on executing our business plan, implementing the previously-announced restructuring in our healthcare business, and continuing to deliver outstanding value to our members.”
5. The Advisory Board Company has not yet set a timetable for this process or made any decisions related to strategic alternatives, the company said.
6. Additionally, the company noted, it is not a given that the board’s exploration of strategic alternatives will result in “any change of strategy or transaction being entered into or consummated or, if a transaction is undertaken, as to its terms, structure or timing.”
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