MMO Behavioral Systems Completes Aquisition Financing

Brentwood Capital Advisors LLC recently acted as the exclusive financial advisor to MMO Behavioral Systems (“MMO” or the “Company) and assisted the Company in obtaining debt financing led by JPMorgan Chase & Co. and Business First Bank. Proceeds were used to refinance existing indebtedness and fund the acquisition of West End Hospital, a psychiatric hospital located in Jennings, Louisiana.

MMO Behavioral Systems is a leading provider of inpatient and outpatient behavioral health services based in Baton Rouge, Louisiana. MMO’s Chief Executive Officer, Mr. Robert Miller, remarked, “The completion of this financing will enable MMO to continue its acquisition strategy and better position the Company to become the leading owner and operator of acute care and outpatient psychiatric facilities in Louisiana and throughout the Southeast. Brentwood Capital played a critically important role in positioning MMO with lenders and structuring the competitive process that resulted in an extremely positive outcome for MMO.”

“MMO sought capital at a challenging time for the behavioral sector as Medicare outpatient reimbursement rates changed significantly on January 1, 2011. We were able to address lenders concerns by detailing the pro forma impact of these changes on MMO’s existing business while focusing attention on the Company’s growth prospects, stated L.A. Galyon of Brentwood Capital Advisors LLC. “With the acquisition of West End, MMO is uniquely positioned to provide a complete continuum of care to behavioral patients throughout Louisiana. We look forward to working with MMO as they continue to add facilities throughout the Southeast.”

About MMO Behanvioral Systems

MMO Behavioral Systems, founded in 1993, is a leading provider of inpatient and outpatient behavioral health services in Louisiana and Mississippi. Through its freestanding specialty psychiatric hospitals and outpatient programs, MMO offers a full continuum of behavioral health programs to mentally ill adults and geriatric patients. The Company’s services include crisis stabilization, acute psychiatric services, acute chemical dependency services, partial hospitalization programs, intensive adolescent weekend services, outpatient services and support group services. For more information, please visit www.mmoinc.com.

About Brentwood Capital Advisors LLC

Brentwood Capital Advisors LLC, founded in 1999, is a privately held investment bank headquartered in Nashville, Tennessee, providing mergers & acquisitions and capital-raising advisory services to middle-market companies in the healthcare, information technology, financial services and business services sectors. BCA has served as exclusive financial advisor in over 50 successfully closed transactions in these sectors. For more information, visit www.brentwoodcapital.com.


Panel sees health-care industry on upswing (The Tennessean)

The health-care industry is in an unprecedented period of change. Corporations, hospitals, health-care providers, public officials and patients are seeking ways to improve care quality and reduce costs. These trends, coupled with health reform and game-changing technology, are transforming the ways health care is being delivered.

A hallmark of Nashvill’s $62 billion health-care industry is its well-known ability to respond to changes in the market and health-care policy, which positions the city well to experience significant growth and job creation. This past week at its annual “Financing the Deal” panel discussion, the Nashville Health Care Council convened a panel of experts from investment banking and private equity from across the nation to give their insider perspectives on the health-care market and areas of growth and investment. The experts agreed on several issues:

It’s a great time to be a health-care entrepreneur or business leader. Valuations are attractive, capital constraints are lifting, and access to funding is more available than ever before. New ideas about how to make health care more efficient and effective are being funded sooner and at higher levels than they have been in years. Furthermore, milestones such as HCA’s public offering, a historic event in the capital markets, are paving the way for other deals and transactions.”

We will see growth and investment in many arenas. Health-care providers are poised for growth, along with other sectors, from pain management and radiation oncology to home health care and technologies that help patients become better consumers. Much focus is on the health-care information technology sector, as solutions are developed that improve patient and provider engagement and turn collected health data into usable information that leads to better health outcomes.

The changing environment is creating significant opportunities for companies. To address policy changes and meet evolving needs, new companies that work to improve clinical processes and lower costs are being formed, and established companies are expanding services and finding their own niches in the changing landscape. Collaborations are being developed across the industry that are pioneering ways to improve patient care.

Factors make Nashville rising industry leader

Nashville is positioned to become the center of the health-care industry. The city is home to a diverse mix of more than 250 companies in hospital management, health information technology, disease management and clinical research, among other sectors. Several other factors also set Nashville’s health-care industry apart.

Start-up and expanding health-care companies can launch operations here in less time than anywhere else. Nashville also offers access to a deep bench of talent that comes from the city’s more than four decades of expertise in health-care management, as well as a tremendous network of experienced investors and advisers that can support companies of all sizes. Adding to it is the collaboration and respectful competition between members of the industry that have fostered a unique environment for health-care business.

The Nashville Health Care Council panel reinforced that Nashville’s health-care industry is ready to take the lead in this evolving market. I look forward to seeing how the industry grows and creates new opportunities and jobs in our community in the months and years to come.

Tom Wylly is a senior partner at Brentwood Capital Advisors and served as moderator of the Nashville Health Care Council ‘s“Financing the Deal” program. He serves on the board of Nashville Health Care Council and is chairman of the Nashville Capital Network.

Tom Wylly

About Brentwood Capital Advisors LLC

Brentwood Capital Advisors LLC, founded in 1999, is a privately held investment bank headquartered in Nashville, Tennessee, providing mergers & acquisitions and capital-raising advisory services to middle-market companies in the healthcare, information technology, financial services and business services sectors. BCA has served as exclusive financial advisor in over 50 successfully closed transactions in these sectors. For more information, visit www.brentwoodcapital.com.


More Action Predicted for Nashville’s Health Care Industry

NASHVILLE A panel of top financial executives told more than 300 health care leaders at the Nashville Health Care Council’s annual Financing the Deal panel discussion on May 10 that 2011 is shaping up to be a robust year of growth and investment in Nashville’s $62-billion health care industry.

Moderated by Tom Wylly, senior partner at Brentwood Capital Advisors, the panel featured experts from investment banking and private equity who gave insider perspectives on the state of the health care market, trends in M&A activity and the outlook for funding growth across health care sectors. Participants included Andrew Bhak, managing director, Morgan Stanley; Rob DiGia, global head of health care banking, UBS Investment Bank; Annie Lamont, managing partner, Oak Investment Partners; and Raheel Zia, managing director, Merchant Banking Division, Goldman Sachs.

Panel members were enthusiastic about the health care industry’s prospects. “We have seen a tremendous snap back in the financial markets,” Bhak said. “It looks like it is going to be a very strong year.”

Zia added, “It is a fantastic time to be an entrepreneur and own or run a business. There is a lot of capital in the health care market and a lot of interest in the market from non-health care investors on the venture/private equity side.”

Panelists explored a number of key issues that are impacting the industry including health care reform. “Health care reform is propelling an explosion of new opportunities,” Lamont noted.

They also predicted increases in M&A activity as companies seek to expand the services they provide, especially efforts to increase transparency, lower costs and improve quality. The panel also noted the promise of health care IT providers that can assist in aggregating growing stores of health data and creating intelligent, usable information for physicians and patients.

“One of the key themes in health care these days is the shift from a payer-centric environment to provider-centric one,” DiGia said. “At the end of the day, providers manage care and I think you will see a number of other companies as well as M&A transactions that will play on this theme. The market is starved for health care services.”

View insights from moderator Tom Wylly below.

Pain management, radiation oncology, new web-based and mobile technologies for patients, tools for health outcome analysis, and post-acute care services such as home health providers were among additional areas of potential growth and investment discussed.

“Nashville is home to a diverse base of health care companies from large established industry leaders to small upstart innovators that are ideally positioned to capture emerging opportunities.” said Nashville Health Care Council President Caroline Young. “As the panel underscored, health care is in a very dynamic period right now, led by Nashville’s unique industry cluster. The financing and deal-making trends we see here today, in many ways, will shape investing across the nation.”

About the Nashville Health Care Council

The Nashville Health Care Council, founded in 1995 as an initiative of the Nashville Area Chamber of Commerce, is an association of health care industry leaders working together to further establish Nashville’s position as the nation’s health care industry capital. Worldwide, Nashville’s health care industry generates $62 billion in revenue and approximately 400,000 jobs, and is Nashville’s largest and fastest growing employer. For more information on the Council, please visit www.healthcarecouncil.com.

About Brentwood Capital Advisors LLC

Brentwood Capital Advisors LLC, founded in 1999, is a privately held investment bank headquartered in Nashville, Tennessee, providing mergers & acquisitions and capital-raising advisory services to middle-market companies in the healthcare, information technology, financial services and business services sectors. BCA has served as exclusive financial advisor in over 50 successfully closed transactions in these sectors. For more information, visit www.brentwoodcapital.com.