Rycan Technologies, Inc.

Rycan Technologies, Inc.

Company Overview

Leading provider of web-based revenue cycle management (“RCM”) software that enables hospitals to increase revenue, accelerate reimbursement and improve employee efficiency.

Leading provider of comprehensive healthcare information systems to rural community and critical access hospitals. Portfolio company of Francisco Partners.

Situational Overview

Rycan’s sole shareholder wanted to sell to a buyer that was a cultural fit and could provide 100% liquidity and the ongoing capital and leadership to expand the Company’s footprint beyond its mostly Minnesota-based customers.

The passage of the Affordable Care Act created tremendous administrative and profitability pressures for critical access and rural hospitals in general and payer-specific reimbursement changes in Minnesota caused many providers in Rycan’s largest market to delay IT purchasing and implementation decisions.

Despite the delays in making IT capital spending decisions, demand for the Company’s leading, cash flow accelerating RCM software solutions remained strong and created significant pent-up demand.

BCA Strategy

BCA designed a sell-side process that preserved confidentiality while targeting predominantly strategic buyers seeking to either add software solutions like Rycan to their product lines to be sold through their salesforce or acquire customers.

BCA focused buyers on the potential for accelerated growth by highlighting Rycan’s historical success and the RCM product suite’s features and functionality, providing a robust analysis of the Company’s current pipeline that substantiated pent-up customer demand and frequently communicating new customer wins and improving financial results to prospective buyers.

Transaction Result

After evaluating multiple purchase offers, Rycan opted to sell to Healthland, Inc., a portfolio company of Francisco Partners.

The shareholder received 100% liquidity.

Sell-side Advisory to

“Brentwood Capital Advisors did extraordinary work for Rycan. I picked a great company to advise me in this process and could not be happier with the outcome. My only regret is not hiring them sooner.”
- Ryan Ellefson
CEO, Rycan Technologies, Inc.