Group purchasing organization specializing in the long-term care industry.
Leading health care services company offering solutions to support the complex needs of the alternate site heath care provider.
A strategic buyer made an unsolicited offer to purchase 100% of the Company.
Although shareholders were interested in liquidity, the offer was below owners’ valuation objective. Shareholders also believed there was significant upside opportunity in the business and wanted to maintain a meaningful ownership stake.
The shareholders engaged BCA to conduct a competitive process that included strategic and financial buyers/investors that would consider majority and minority investments and a strategic sale.
Assisted management in preparing investment materials that fairly represented the Company’s growing customer base, strong same-member sales growth, industry-leading internally-develop business analytics tools, and its strategic relationships.
Positioned the Company as a leading specialty GPO serving the difficult-to-penetrate long-term care industry.
BCA proposed and negotiated a transaction structure that met all shareholder objectives. The transaction allowed shareholders to achieve significant liquidity in a majority sale while maintaining a meaningful stake in a standalone subsidiary that would be provided additional capital with which to consolidate the industry.
Navigator was sold to Managed Health Care Associates, Inc.
The final valuation exceeded the initial unsolicited direct offer by approximately 20%.
The shareholders received 100% liquidity, a portion of which was reinvested in the Company.
This transaction is a great outcome for our company, its management and its shareholders, and we are very excited to be joining a leading healthcare services company like MHA. Brentwood Capital Advisors, our investment banking advisor, played a critically important role in structuring, negotiating and closing a transaction that met and exceeded the varying needs of our shareholders, for liquidity and for ownership going forward. We benefitted enormously from Brentwood Capital Advisors expertise and commitment to success in this complex sale process.
- Mark Eaton
CEO, Navigator Group Purchasing, Inc.