Haven Behavioral Healthcare

Haven Behavioral Healthcare

Company Overview

Leading provider of behavioral healthcare services, focusing primarily on geriatric acute psychiatric care. The Company operates six acute psychiatric facilities in five states.

BBH Capital Partners (“BBH”) is an $802 million middle market private equity firm focused on investing in high-growth companies in the healthcare, technology, media and telecommunications, and business products and services industries.

Situational Overview

Haven was a portfolio company of Thoma Cressey Equity Partners, Inc., predecessor firm to the well-respected healthcare investor, Cressey & Co., which purchased the Company in 2006. Cressey & Co. is currently investing out of its fifth fund and wanted to explore selling the Company in order to provide a return to its limited partners and fully liquidate this legacy fund.

A very experienced and proven management team was installed in late 2013 to improve operations and financial results and had achieved significant gains in census and profitability. With time and additional capital, BCA believed Haven could achieve the scale to take advantage of the significant facility-level and corporate infrastructure required to effectively treat this patient population and dramatically increase EBITDA.

Because of this profile, BCA believed that there would be equally strong interest among prospective strategic and financial buyers. Cressey & Co. engaged BCA to sell the business, and BCA conducted a highly targeted yet fulsome process.

BCA Strategy

BCA assisted management in preparing marketing materials that included detailed financial projections that demonstrated the significant increases in EBITDA that could be gained by increasing bed capacity at existing facilities and developing de novo locations within existing markets.

BCA positioned Haven as a large, turned-around platform with a deep, proven management team that had a realistic, capital-efficient growth plan that would leverage existing overhead and generate significant EBITDA within a two- to three-year period. This team and their plan generated strong interest from strategic and financial buyers.

Transaction Result

Haven received several Letters of Intent and eventually chose to go exclusive with BBH.

BCA helped manage the diligence process, negotiated attractive terms for the sellers and closed the transaction within 60 days of going exclusive, with shareholders receiving 100% liquidity.

recapitalization led by

“Brentwood Capital Advisors helped us identify the best partner that shared our strategic vision. BCA’s strong industry relationships and behavioral healthcare expertise generated a process that yielded the best outcome for existing shareholders and the right partner for the Company going forward.

- Mike Lindley, CEO
Haven Behavioral Healthcare