Spear Education LLC

Spear Education LLC

Company Overview

North American leader in campus-based and online post-graduate clinical dental education that enables doctors to diagnose and develop a comprehensive treatment plan and to improve case acceptance and clinical skills.

Middle market private equity firm focused exclusively on companies in the medical products, specialty distribution, specialty pharmaceuticals, diagnostics, and services segments of healthcare.

Situational Overview

Six shareholders had widely varying operational involvement and liquidity.

Existing operating agreement and governance had created cumbersome decision-making process.

Management wanted an investment partner that had significant dental industry experience and the expertise to accelerate existing and develop new growth initiatives.

Shareholders were open to considering either a minority or majority investment provided that they could retain meaningful ownership and remain in operational control of the business.

BCA Strategy

BCA performed significant analysis of the Company’s financials and customer data.

Positively positioned the Company’s transition from a campus-based to subscription-based model, emphasizing the growth opportunity of the expanding recurring revenue model.

Articulated the Company’s evolution from an almost entirely campus-based education and revenue model to one that incorporated a rapidly growing remote learning, subscription-based, recurring revenue component.

Also successfully communicated each shareholder’s previous and desired future role in the Company, which resulted in a seamless management transition at close.

Transaction Result

Designed an intensely competitive process that targeted solely financial investors with significant experience and success either directly in the dental industry or in other businesses with similar characteristics. Shareholders selected Linden as its investment partner, who was the lead investor in two successful dental deals.

Valuation exceeded the top end of management’s expectations.

Management was able to retain significant ownership in the Company.

Transaction met all shareholder liquidity needs.

Recapitalization Led by

“Brentwood Capital Advisors, our investment banking advisor in this transaction, conducted a highly-competitive process that resulted in a great outcome for existing shareholders and the right partner for the Company going forward. BCA played a critical role in preparing us to go to market and in the success of the process. We could not be happier with the result and look forward to working with the Brentwood team again.”
Frank Spear
Spear Education LLC