American Physician Partners

American Physician Partners

Company Overview

A leading provider of comprehensive management and staffing services for emergency departments and hospitalist programs throughout the Southeast and Southwest.

Lends and invests Goldman Sachs’ capital through stand-alone first-lien, second-lien, uni-tranche and junior capital investments directly to mid-sized companies across the United States and Canada.

Situational Overview

An executive management team with extensive hospital management experience wanted to build an outsourced emergency department and hospitalist staffing company through acquisitions.

APP identified and was able to sign letters of intent (LOIs) with two physician-led staffing companies and wanted to raise the capital required to complete the purchase that would maximize their ownership.

For several months, management explored financing through their own existing relationships, finding all alternatives too costly. This time-consuming process was not only unsuccessful but was also jeopardizing the exclusivity provisions of the LOIs.

APP approached BCA to determine if the company had other options to secure acquisition financing that would allow management to maximize ownership and that could be closed quickly.

BCA believed that APP could finance the transactions exclusively through debt that would require minimal equity ownership.

BCA Strategy

Due to the pro-forma cash flow generated by the acquisitions and newly signed contracts, BCA recommended evaluating debt financing alternatives to accomplish management’s goals.

BCA assisted management in preparing lender materials that highlighted the cost synergies associated with combining the two companies, the pro-forma effect of newly executed contracts and the robust pipeline being developed using new management’s C-suite level hospital relationships.

BCA contacted a broad array of senior, unitranche and mezzanine lenders.

Transaction Result

After evaluating alternatives, American Physician Partners selected Goldman Sachs Specialty Lending Group.

With BCA’s help, APP successfully acquired the two companies under letter of intent in less than 120 days and retained a significant majority stake in the business.

Acquisition Debt Financing Led by
$23,400,000

“Brentwood Capital Advisors, our investment banker in this transaction, played a critically important role in the formation of the Company by successfully obtaining acquisition financing along with the growth capital needed to execute our business plan while maximizing our physician partners and management’s ownership.”
- John Rutledge
CEO, American Physician Partners, LLC.