The Advisory Board Company weighing option for sale

The Advisory Board Company is evaluating its strategic operating options, including the potential separation or sale of part or all of the company, it said Monday.

The announcement follows an announced layoff last month of about 220 employees, or 5.7 percent of its total workforce, and the close of four offices by the end of 2017.

Weak fourth quarter earnings for the consulting and healthcare technology company followed the election of President Donald Trump.

The Advisory Board said Monday it is weighing alternatives that could include changes in the company's operations or strategy, a separation or the sale of part or all of the company, or continuing its current long-term business plan.

[Also: The Advisory Board lays off more than 200, cites pullback after Trump election]

"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," said Chairman and CEO Robert Musslewhite. "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."

The review process could result in no change of strategy or transaction, the company said.

"The Company's Board of Directors has not set a timetable for this process nor has it made any decisions related to strategic alternatives at this time, and there can be no assurance 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," the company said.

The company does not expect to make further public comment unless and until the board has approved a specific transaction or alternative or otherwise concludes its review of strategic alternatives.

The board of directors will conduct a thorough review to determine the best course of action for its shareholders, members, and employees, said Robert Borchert, vice president of Investor Relations.

"While our board conducts this review, we will continue to deliver outstanding service and value to our health care and education members, which is what we have successfully done across our 35-plus year history," he said.

Goldman, Sachs & Co. and Allen & Company are acting as financial advisors to the company.

The company's stock has risen since December and as of Monday was trading at $47 a share, more than double its 52-week low price of $18.87 a share.

The Advisory Board Company, headquartered in Washington, D.C.,  works with more than 5,500 healthcare organizations and educational institutions. 

Twitter: @SusanJMorse