Situation

Facing evolving industry dynamics and a complex technology stack, Medsphere sought a strategic path forward that would best support customers, employees, and stakeholders. Despite meaningful cost-reduction efforts, the business continued to face operational and cash flow pressure following several acquisitions that had not yet integrated into a cohesive platform. 

The Company engaged G2 Capital Advisors (“G2”) to evaluate strategic alternatives and identify paths to secure operational stability and long-term growth.  

Engagement

G2 was first engaged as a financial advisor to Medsphere to conduct a rapid assessment of strategic alternatives and to develop an operational restructuring plan. G2’s restructuring plan required additional capital and presented meaningful execution risk. G2 secured multiple short-term forbearance agreements, that provided additional time to align stakeholders around a sale process that would provide a recovery on past investments. In partnership with management, G2 provided hands-on guidance to manage liquidity, maintain employee continuity, and preserve customer relationships while preparing the business for an expedited transaction process.  

Leveraging deep experience across the technology sector, G2 worked closely with the Medsphere team to negotiate with the buyer, stabilize operations, and manage liquidity under extreme time pressure. Throughout the engagement, G2 maintained momentum through complex, multi-party negotiations—balancing shifting expectations with continuously evolving transaction terms.  

G2 drove a fast-paced, tightly coordinated closing effort to preserve value after navigating delays in counterparty diligence efforts. Despite these obstacles, G2’s disciplined execution, speed, and communication across stakeholders kept the process on track and prevented disruptive alternative outcomes. 

Outcome

The process culminated in the sale of substantially all of Medsphere’s assets to CareCloud, Inc. (NASDAQ: CCLD), a publicly traded provider of software solutions for healthcare organizations. The acquisition enabled the Company to preserve jobs, to support continued customer access with no interruptions to client care, and to provide a path for reinvestment in product offerings under new ownership, while maximizing recoveries for the secured lender and minimizing cash required to fund the business.  

The transaction delivered a materially better outcome than alternatives and provided all parties with a constructive resolution. The result offered stability for employees and customers.  

“G2’s steady advice, robust analytical support, and precise project management were critical to Medsphere navigating a challenging operational environment and diverse stakeholder dynamics, ultimately leading to a positive outcome for all stakeholders,” said Medsphere CEO and Board member Robert Hendricks.