After leading this and its predecessor Company for nearly twenty years, Ascend’s shareholders were seeking liquidity and a buyer that could continue its mission-driven focus.
The business consisted of 14 contracts that were awarded based on strong long-term relationships nurtured largely by the selling shareholders.
Over the last two years, Ascend had built the next layer of management, grooming a replacement CEO and transitioning key customers to its relationship management teams in anticipation of a transaction.
Prior to distributing the marketing materials, Ascend lost its first customer, a state that represented ~20.3% of EBITDA. Shareholders were concerned whether or not a sale at this time could meet their valuation goal.
BCA believed Ascend could still complete a successful transaction based upon the significant revenue and EBITDA associated with executed contracts that were scheduled to be implemented prior to closing any transaction. Based on this analysis, BCA recommended that Ascend begin the sale process.
Due to the niche nature of Ascend’s market, BCA recommended a highly focused process that targeted several strategic buyers, which would meet the sale’s financial and cultural objectives.
BCA successfully communicated Ascend’s market-leading position and presented extensive financial analysis demonstrating that signed contracts more than offset the loss of its major customer.
BCA also made successor leadership the focal point of all meetings with buyers, validating the successful management and customer relationship transition and ability to continue to grow the Company.
After evaluating several attractive offers, Ascend agreed to sell to MAXIMUS, which represented the best cultural, mission and financial alternative for shareholders.
BCA assisted Ascend’s shareholders in navigating and fulfilling a rigorous diligence process.
The transaction provided shareholders with 100% liquidity, and BCA was able to successfully structure an earn-out based upon the renewals of two important existing contracts.
“Brentwood Capital Advisors, our investment banker in this transaction, played a critical role in structuring a competitive process and closing a transaction that met all of the shareholders’ goals including maximizing value and finding the best partner for Ascend. BCA provided extensive guidance that was essential to the success of the transaction, and we would not have been able to complete this process without their support."
CEO, Ascend Management Innovations