Xtend Healthcare LLC

Xtend Healthcare LLC

Company Overview

National provider of revenue cycle outsourcing solutions that address short-term accounts receivable issues and provide long-term outsourcing services for hospitals.

Leading investor in lower middle market companies, managing $500 million in capital.

Situational Overview

Xtend has a proven management team that had previously built and sold a similar business to Perot Systems.

Management felt there was an opportunity to repeat success and reassembled the team to build a new industry leader, capitalizing on deeply entrenched relationships and a reputation for delivering the highest quality and most effective RCM services.

The founders wanted to achieve significant current liquidity while still retaining a substantial stake that would enable them to benefit from continued growth.

Shareholders were open to considering either a majority recap or a strategic sale.

BCA Strategy

Conducted a broad process that incorporated approximately 50 strategic and financial buyers.

BCA positioned this liquidity event as chance for the founders to broaden the ownership to the next generation of management leaders and key sales personnel in the company.

BCA provided extensive customer analysis that conveyed the depth and breadth of these relationships and their strong track record of consistently converting these clients from initially project-based into fully outsourced recurring revenue accounts.

Transaction Result

After reviewing several bids, management selected WestView Capital as its financial partner.

Through a combination of debt and equity, WestView purchased 60% of the Company, enabling management to achieve significant liquidity while retaining a substantial stake and operating control in the Company.

Recapitalization Led by
Undisclosed

“BCA effectively communicated Xtend’s story and value proposition to potential investors, resulting in a very attractive valuation. We were pleasantly surprised that every member of the BCA team participated in every meeting and conference call. The senior attention, responsiveness and professionalism of the team were critical elements in successfully closing the transaction and achieving our valuation and other key objectives. We enjoyed working with the BCA team and look forward to working with them in the future..”

- Tom O’Neil
CEO, Xtend Healthcare LLC