eSolutions

eSolutions

Company Overview

Leading provider of SaaS-based specialty claims management solutions for RCM to over 1,000 providers, including over 500 hospitals.

Leading investor in lower middle market companies, managing $500 million in capital.

Situational Overview

eSolutions had received numerous unsolicited calls from potential financial investors.

eSolutions was successfully bootstrapped by the founder, who had built a very valuable business over a 12-year period.

Shareholder wanted liquidity at favorable capital gains rates and was interested in exploring minority and majority investments, as well as a strategic sale.

Attractive industry dynamics were driving premium valuations by both financial and strategic buyers.

BCA believed that eSolutions could by valued based on forward revenue and EBITDA based upon its strong pipeline, recurring revenue and new business visibility.

BCA Strategy

Advised the Company to approach a broad group of HCIT-focused private equity funds and strategic buyers.

Assisted management in preparing information materials that fairly represented the Company’s improving operating performance, increasing cash flow and forward revenue and earnings visibility.

Analyzed monthly, quarterly and annual recurring revenue payments in order to convert revenue from a cash- to GAAP-basis and built a comprehensive revenue waterfall to determine and present the amount of “go get” revenue required to substantiate the Company’s forward financial projections.

Transaction Result

eSolutions opted to sell a minority stake in the Company to WestView Capital Partners at a valuation at the top end of the range initially indicated by BCA.

The leveraged minority recapitalization enabled founders to achieve significant liquidity while still maintaining a substantial majority ownership position in the Company.

Recapitalization Led by
Undisclosed

“We are very pleased to have worked with Brentwood Capital Advisors as our exclusive financial advisor. The result of their process exceeded our expectations and achieved all of our goals. We trust their advice and hope to continue our close relationship in the years ahead.”
- Bill Creach
CEO, eSolutions