Medical Direct Club

Medical Direct Club

Company Overview

A leading direct to consumer provider of urological supplies, marketing its products primarily through TV advertising.

A private equity firm specializing in investments in rapidly growing, small to middle market companies.

Situational Overview

Early stage company looking to raise growth equity to fund increased TV advertising budget and boost sales.

MDC was initially funded by local angels investors and small funds that did not have the resources to continue funding the complete capital structure.

Seeking an institutional investor to provide growth capital and strategic guidance.

Periodically, the Company had explored raising capital itself but did not have the bandwidth or experience to successfully run a process that would attract institutional investors.

Based on our knowledge of the Company, BCA believed it could position the Company’s strong results and conduct a process that would attract investors. MDC engaged BCA.

BCA Strategy

Prepared a targeted list of potential investors comprised of venture capital and lower middle market private equity firms.

Assisted in preparing a presentation and financial model to effectively communicate the growth potential and predictable results that could be achieved through additional advertising investment.

The process yielded several attractive proposals that could be structured to work with the Company’s complex capital structure.

Transaction Result

Medical Direct Club raised $5,000,000 in growth equity from Fulcrum Equity Partners.

The valuation achieved was in the range initially indicated by BCA.

Equity Investment Led by
$5,000,000

“Brentwood Capital Advisors positioned Medical Direct Club perfectly in the market attracting attention from numerous national Institutional Investors and creating a positive competitive environment for investment in the company.

The resulting transaction has created a great relationship with our new investor and the company was able to double the business within one year of closing with accelerated growth forecasted. I thoroughly enjoyed working with Brentwood Capital Advisors.”

Brad C. Gulmi
CEO & Founder,
Medical Direct Club