Sector-Specific Strategy and Expertise

In the highly competitive and sought-after sector of autism services, Alternative Behavior Strategies attracted substantial interest from buyers. By the end of the process, we received an extraordinary eighteen (18) letters of intent, finally settling on a proposal from MMC, Petra, and Altos. Our client retained equity in the deal and was subsequently rewarded when the company completed a secondary buyout with Morgan Stanley Expansion Capital.

• Buyer
  Private Equity Sponsors MMC Health Services, Petra Capital Partners, and Altos Health
• Significance
  Platform Transaction

When we first engaged with Accredited, they were essentially a traditional Medicare-certified home health provider. While sizeable, we advised them to delay going to market to increase their valuation. Over the course of multiple years, we stayed close to the firm, continually monitoring the business and its exit opportunities. Ultimately, Accredited recognized the opportunity in managing self-directed care for individuals with developmental disabilities, and the firm exploded in revenues and profitability. Once they achieved double-digit EBITDA (in millions), we advised that they go to market, where they ultimately sold to Aveanna for more than $200 million.

• Buyer
  Aveanna Healthcare
• Significance
  Timing

American Homecare Supply, a subsidiary of industrial gas provider Air Products, was an extremely active consolidator of independent respiratory and home medical equipment providers. Air Products eventually decided to divest AHS, characterizing the subsidiary as a discontinued operation, which meant the firm needed to be divested within one year. They engaged a Wall Street investment banking firm, which mistakenly attempted to sell the business in one transaction to a single buyer. Having failed to secure a buyer, AHS engaged The Braff Group to complete a divestiture in six months. Recognizing the need to break up the business into multiple “parcels,” we eventually sold the company to nine different buyers in nine transactions, meeting our client’s deadline.

• Buyer
  Multiple Buyers
• Significance
  Corporate Divestiture & Speed

Our client specialized in providing medications for the treatment of RSV (Respiratory syncytial virus), a largely seasonal infection that peaks during the six months from October through March. As such, the bulk of our clients' revenues was generated during that period. This meant that, from a practical perspective, buyers would insist on closing a deal prior to the beginning of the RSV season. The challenge? We were hired in August, two months before revenues would begin to ramp up. Ultimately, we were able to move from the initial signing of our contract to a closed and funded deal in 66 days.

• Buyer
  Curative Health Services
• Specific Sector
  Home Infusion and Specialty Rx
• Significance
  Speed

Our client was a fast-growing health care staffing provider, generating revenue from travel nursing and a profitable specialty niche. While they had a clear edge in that niche, revenues came in bursts as short-term contracts were won and completed. On top of that, the company hit the market during COVID—when staffing demand was at its highest, but also highly unpredictable—and buyers were hesitant about the sector.

To get the most value, we needed to show buyers a way to manage the ups and downs in revenue. We did that by structuring a deal with three key features: (a) a strong upfront cash payment, (b) letting the seller keep accounts receivable, which reduced the capital the buyer had to put in, and (c) multiple contingent deferred payments. We also built in “collars” around those deferred payments to soften the impact of any modest performance shortfalls.

In the end, our client collected a premium price for the company, even against a backdrop of volatile market conditions.

• Buyer
  Private Equity Sponsored Strategic Provider
• Significance
  Complexity and Creativity

Jaysec offered highly specialized web-based software as a service (SaaS) applications for home medical equipment, home health, and hospice providers that streamlined the process for obtaining and documenting all the information required to properly serve the patient and bill for services rendered. Such a niche software solution required an equally niche strategic acquirer. Recognizing the opportunity for a respiratory equipment provider to offer this software to its customers and thus create another competitive advantage in the market, we eventually closed a transaction with ResMed, a market leader in CPAP products and supplies, at a valuation of four times revenues.

• Buyer
  Resmed
• Significance
  Execution