Improve Your Company's Exit Readiness

Came across a timeless blog post that should resonate with many small or medium business owners considering a sale:

• Where to start?…Prepare an exit strategy.
• What's next?…Organize key company information.  
• What kind?…Generally, the info falls into these categories:  Financial History, Intellectual Property, Regulatory Compliance.

>>Read more
Source:  Appfolio / Secure Docs

Satori's Entrée to Healthcare...Longhorn

Austin, TX-based Longhorn Health Solutions was acquired recently by Dallas private equity firm Satori Capital.  

Longhorn is a direct-to-consumer distributor of durable medical equipment, consumable medical supplies and pharmaceutical prescriptions (e.g.: incontinence supplies, enteral nutrition products, and diabetic testing supplies) to home-based Medicaid, Medicare and privately insured patients across Texas. The Satori partnership will offer Longhorn opportunities for “organic expansion and growth via acquisition” according to Britt Peterson, CEO. 

Peterson will continue to lead the company with 10 Texas warehouses and 150 employees.  He notes:  

"Longhorn has earned a reputation for excellence through its reliable performance, dedicated customer service, statewide presence, and commitment to integrity and kindness across everything that we do...”

>>Read more

H.I.G.'s CIS adds Access Family Services

Community Intervention Services (CIS) announced the acquisition of Access Family Services (Access) to the H.I.G. Growth Partners’ behavioral health platform in January, 2013. It represents CIS’ second acquisition.  Access is a leading provider of community-based outpatient behavioral health services in 6 North Carolina markets.     The Charlotte-based organization employs a clinical staff of over 100 clinical therapists, qualified behavioral health professionals and developmental educators.  >>Read more

South Bay Mental Health, based in Brockton, MA, was the first CIS acquisition in April, 2012.

Partying Outside The Big Easy...

While football fans party at Super Bowl festivities in New Orleans, Oceans Healthcare is reveling in $40M+ in investments from General Catalyst Partners and MCG Capital Corporation. 

The Lake Charles, LA-based company specializes in the development and management of behavioral health services – focused on geriatric patients – operating over 10 facilities throughout the Bayou State.  Oceans Healthcare looks to expand to underserved communities located throughout Texas, Mississippi, Alabama, Arkansas. 

DermOne Acquisition Arm Stretches to NC

 Leading dermatology services provider, DermOne Dermatology Centers completed two acquisitions in late 2012.  Formerly known as Accredited Dermatology founded by Dr. Rami Geffner, DermOne features a network of 35 locations.  Another New Jersey location was added with the practice of Dr. Isaac Mordecai, a specialist in medical and cosmetic dermatology.  Additionally, DermOne acquired Atlantic Dermatology of Wilmington, NC under the leadership of Dr. Jonathan Crane.  DermOne CEO, Ron Geraty noted that, 

“...With the acquisition of Atlantic, we are launching our efforts to grow beyond our core markets in New Jersey and Pennsylvania and see this as the first of many steps toward becoming a national company...”  >>Read more

Hectic Fall for Heartland

Heartland Dental Care’s CEO, Richard Workman, is likely still smiling from a gratifying finish to 2012.    

After seeking a buyer in early September, the Ontario Teacher’s Pension Plan (Canada) agreed to buy a majority stake in Heartland Dental Care outbidding traditional buyout funds run by KKR, Madison Dearborn Partners and Apax Partners.  The estimated value of the deal is $1.3B.  Workman, together with management and employees retain a minority stake in the company.

Later in the Fall, Heartland with 370+ affiliated US dental practices was recognized on Inc. Magazine’s "Hire Power" Awards list – a salute to US job creating companies (within the last 3 years).  Heartland created 1,150 jobs. 

The Midwest-based company that provides leadership and support services to dentists  experienced a busy December.  Numerous practices were added to its affiliate list, most notably, Goldstein, Garber & Salama, LLC, an 83-year old Atlanta-based dental practice specializing in cosmetic dentistry.

NextCare - Deeper in the Heart of Texas

Waco’s Central Texas Urgent Care is the latest acquisition by Mesa, AZ-based urgent care chain, NextCare – now operating 71 clinics in the East, West and Midwest. 

While staff at the two newly-acquired locations will remain the same, a new and different service will soon be available. WAHOO (Wait at Home or Office) is NextCare’s wait-at-home check-in service where patients can wait to be contacted for their exam.  

The Waco acquisition follows an October buying spree that added over 10 clinics, including one in Houston, to NextCare’s clinic total.  >>Read more 

New Owner for Plum Healthcare

Plum Healthcare Group LLC, an owner/operator of 50 skilled nursing facilities and 5 home health and hospice agencies was acquired by Bay Bridge Capital Partners.  Plum facilities are located throughout California as well as Utah and Arizona.  The seller, private equity firm GI Partners, is credited with acquisition and turnaround of 39 skilled nursing facilities and expanding into two additional states.  The sale of Plum generated approximately three times the capital invested by GI Partners. >>Read more

Linden Adds to Dental Platform

Following its October, 2012 acquisition of Northwestern Management Services, LLC, Chicago-based Linden Capital Partners continues investments in the oral care industry.

Young Innovations, a St. Louis-based dental supplies manufacturer signed an agreement to be acquired by the private equity firm - the closing expected in the first quarter of 2013.  Young experienced healthy demand of its consumable products and growth of its new diagnostic line (panoramic x-ray machines and related supplies) generating a 4.8% Q3 increase in income.     >>Read more

Northwestern Management Services LLC provides management and administrative services for Gentle Dental Group.  Gentle Dental, is an upscale retail-based organization with 21 offices in Southeast Florida. 

Acadia Closer to $2B Goal

Acadia Healthcare Company, provider of behavioral health care in 20 states, just announced plans to add 8 more facilities to its 34 facility network by year-end.  With nearly $400M in planned acquisitions since September, Acadia’s latest two deals increases bed count by 25% and extends its footprint into Ohio.  

As part of the late November deal, Acadia will acquire Behavioral Centers of America (Sellers: Linden Capital Partners, Health Enterprise Partners and Siguler Guff & Co.) and AmiCare Behavioral Centers, each operating four facilities.  Acadia CEO, Joey Jacobs noted in a news release, 

“...We continue to consider additional acquisition opportunities in the fragmented inpatient behavioral health industry." 

Under Jacob's leadership, beginning in 2011, Acadia has grown from 6 to over 40 facilities.  At that time, Jacobs said that the company had potential to generate $2B in revenue from 100 facilities.  Acadia continues to move toward those goals.  >>Read more

NextCare on a Roll in Southwest

October was an outstanding month for NextCare Urgent Care, one of the nation’s largest privately-owned providers of urgent care.  With the acquisition of Access Medical Centers, 9 clinics located in Oklahoma and Texas were brought under the NextCare banner.  Facilities in the Phoenix and Houston areas were also part of last month’s buying spree.

CEO John Julian recently announced a significant recapitalization with BMO Capital Markets positioning NextCare for rapid and continued expansion.

NextCare now operates 69 offices in 7 states including Arizona, Colorado, North Carolina, Ohio, Oklahoma, Texas and Virginia.

New Owners for Industry Leader

Ranked #9 on Fortune's "100 Best Companies to Work For" in 2012 is CHG Healthcare Services, a leader in the health care staffing industry. According to the US Bureau of Labor Statistics, double-digit growth is projected for multiple health care professions, particularly therapists and other skilled professionals in the health care traveling industry. Certainly, this bodes well for private equity firms Leonard Green & Partners and Ares Management who have agreed to acquire the company from J.W. Childs Associates.

CHG'S service offering includes temporary and permanent placement of physicians, allied health professionals, and nurses through the brands CompHealth, Weatherly Healthcare, RN Network and Foundation Medical Staffing.  >>Read more

New Owner for Performance Health

Performance Health, a company marketing the highly recognized brands Thera-Band and Biofreeze, has a new owner.  Gridiron Capital acquired the company known for its rehabilitation and wellness products and familiar to practitioners in physical therapy as well as chiropractic, podiatry and massage. >>Read more 

KRG Platform Investment...Infusion Therapy

A provider of home infusion therapy services, Home Solution Holdings LLC, was acquired by private equity firm KRG Capital Partners – reflecting another KRG health care platform investment.   In 2007, Flexpoint Ford recapitalized and combined two companies (Home Solutions and American Infusion Holdings) under the Home Solution banner.  Under leadership of founder Todd Timbrook, Home Solutions has grown to 400 professionals serving the Northeast and Mid-Atlantic regions.  >> Read more  According to KRG managing partner Steve Neumann, 

“Across the country the demand is high for quality providers of home infusion services as cost-containment pressures continue to drive a shift from institutional care to the home environment.”

Growth Investment for IMS

Inpatient Medical Services (IMS), a Midwest outsourced hospitalist management company, serving 150,000 patients annually was acquired by Sverica International.  IMS, founded in 2000 and based in Akron, Ohio partners with hospitals and primary care doctors to improve efficiency, clinical outcomes and transitions of patient care.  Sverica’s investment and operationally-oriented approach is expected to aid IMS in its next growth phase.  >>Read more  

About Time for a PE Spending Spree?

US private equity funds raised $130.1B (326 funds) in the first three quarters of 2012.  Impressive...as this amount nearly matches the capital raised in all of 2011 ($131.5B).  

"Although it's far from easy to raise capital today, more private equity firms have the wind at their backs than [they] did even a year or two ago." said Laura Kreutzer, managing editor of Dow Jones Private Equity Analyst.  

Europe is also enjoying an upswing with a 20% increase in capital raised through the first three quarters of 2012 over last year.  >>Read more    

While current funding continues to be robust, US private equity executives face a ticking clock over funds raised in 2007 and 2008.  Nearly $200B needs to be spent within the next 12 months or it must be given back according to a recent NY Times article "More Money Than They Know What to Do With".

Due to economic uncertainty, there has been a "wait and see" approach to deal making.  However, the looming deadline is prompting a more proactive approach with firms realizing that it’s time to spend...  Clearly, firms are on the trail of the deal, with some engaged in “elephant hunting”, that is, seeking deals worth $10B. Collectively, PE firms have already spent $45B in the third quarter alone according to deal tracking source, Capital IQ. In this environment, Sellers are the Winners...as inflated acquisition prices are a likely result with so much competition for a limited number of deals.  

Keep an eye out for mega deal headlines...and an accelerated pace for deals. 

ATI Bridges East & Midwest with Acquisition

The Motion Hand & Physical Therapy moniker changed on October 1 with its acquisition by ATI Physical Therapy.  The 10-clinic practice increases ATI’s office count to 190 and extends their coverage into Ohio.

“We are especially excited about our expansion into Ohio as it will bridge the geographical gap between our Midwest and East Coast divisions.” according to Greg Steil, ATI CEO.

Dialysis Clinic Platform Formed

Flexpoint Ford, a private equity firm, has formed Corva LLC, a platform focused on acquiring, developing, and operating dialysis clinics. Jerry Simonsen, former CEO of Renal Management Inc., will lead the company which has already acquired Innovative Renal Care – a Houston, Texas-based dialysis center.  Flexpoint plans to invest up to $75 million to support Corva's strategy. 

Corva (www.corvaclinics.com) is headquartered in Greenwood Village, CO (Greater Denver area).  >>Read more

PSS World Medical Sells Specialty Line to PE Firm

PSS World Medical, a medical products distributor to US physicians, reached an agreement to sell their specialty dental business to Beecken Petty O’Keefe & Company.  The sale proceeds will be used for future investments in other business lines – Physician, Lab, Dispensing and Hope Care & Hospice.  The transaction is expected to close in October.  >> Read more

Urgent Care Update...

-Alliance Urgent Care to be Acquired

-Concentra Expands Footprint in KY

Capital Group Holdings announced that it will acquire privately owned Alliance Urgent Care, an organization operating six clinics in the greater Phoenix, AZ area.  Alliance will be renamed OneHealth Urgent Care to be consistent with the branding of Capital Group's telehealth subsidiary, OneHealthPass ™ (OHP).  OHP is designed to become an industry standard telehealth platform for the management and administration of patient-centric telemedicine programs.  Dr. Michael Blumhoff, Alliance CEO, will continue as CEO of the OHP Urgent Care group once the deal is finalized. -->  >>Read more

Urgent Treatment Clinics (UTC) with seven medical centers in the Lexington, KY area is Concentra's latest acquisition.  The Urgent Treatment Clinic name will be preserved according to Concentra, the national provider of urgent care services and subsidiary of Humana, Inc.  Former UTC owners, Dr. Fadi Bacha and Dr. Larry Burns, have been retained by Concentra and will continue providing patient care to residents of Lexington and its surrounding communities.  >>Read more