Company Overview

A leading workers’ compensation (“workers’ comp” or “WC”) RCM company that uses tech-enabled outsourced solutions to accelerate and maximize WC claims reimbursement for hospitals and other healthcare facilities.

Founded in 1984 and with offices in Cleveland and Atlanta, Primus is a growth-oriented private equity firm focused on investing in leading healthcare, software, and technology-enabled services companies.

Situational Overview

Founded in 2000, EnableComp historically provided WC claim collection services to a limited number of hospitals in TN.

In 2009, Jim Lackey joined the company as Chief Executive Officer and began to focus on Day 1 outsourcing, upgrading and expanding management talent and revamping workflow tools.

With most of these milestones completed by 2013, EnableComp generated explosive growth, nearly tripling sales from 2013 – 2016 increasing the percentage of recurring revenue.

With early and institutional investors desiring liquidity, EnableComp engaged BCA in July 2016 to evaluate strategic alternatives.

BCA believed the Company would be valued on its 2017 projected financial performance and launched the process at the 2017 JPM Healthcare Conference.

BCA Strategy

A key part of the sales strategy was to position the Company as a technology-enabled processor of complex claims, greatly expanding its total addressable market beyond workers comp claims and demonstrating the ability to expand gross margins.

BCA was successfully able to articulate EnableComp’s market-leading position, sales pipeline, unique value proposition and recurring revenue model and provide the analytical support to base valuation on full-year 2017 expected results.

BCA ran a robust three-step process that took the two bidders through to the signing of the purchase agreement.

Transaction Result

EnableComp completed a majority recap with Primus Capital that enabled shareholders to achieve significant liquidity while retaining a sizable stake and future upside.

This robust process resulted in a valuation that was ~70% above the range desired by the Board.

Recapitalized by

“Brentwood Capital, our exclusive investment banking advisor, played a critical role in managing, negotiating and closing a highly competitive process that exceeded all of the shareholders’ goals including maximizing value and finding the best partner. This represents my fifth closed transaction with BCA, and I continue to be impressed by their high-quality work and commitment to closing deals.”
- Jim Lackey, CEO