Operators of Medicare Advantage and commercial managed care healthcare plans in Tennessee, Texas, Alabama and Illinois.
Leading $3.85 billion, North American private equity fund specializing in healthcare, business services, financial services and technology.
Favorable legislative and associated reimbursement trends were enabling the Company to rapidly grow revenue and EBITDA.
The Company’s angel investors wanted to take advantage of current market conditions and achieve partial liquidity.
In order to allow investors to make more informed bids and take advantage of rising EBITDA, BCA recommended that investors be able to meet with management before submitting initial Indications of Interest.
Designed a lengthy bid process that allowed strategic and financial buyers to witness the dramatic ramp in EBITDA.
Assisted management in preparing a confidential information memorandum, management presentation, and financial forecast that fairly represented the Company’s improving operating performance and increasing cash flow.
Received bids from all strategic and financial buyers that were invited to the second round at values nearly double the range that BCA had pitched to shareholders.
Through a combination of debt and equity, HealthSpring shareholders achieved over $300 million in liquidity while retaining significant minority ownership in the Company.
Shareholders maximized valuation and had the flexibility to make individual elections of up to 100% of their ownership in cash or reinvested in stock.
“The BCA team handled a recapitalization of our company with the existing shareholders selling a portion of their equity to a private equity group. The valuation that was achieved during our engagement exceeded our expectations, and we found the BCA team to be a pleasure to work with. They did a great job and the transaction propelled us to a new level and we hope to see further progress from here.”
- Herb Fritch