BRENTWOOD CAPITAL ADVISORS SERVES AS EXCLUSIVE FINANCIAL ADVISOR TO FAMILY SUPPORT CENTER

Brentwood Capital Advisors (“BCA”) is pleased to announce that it served as the exclusive financial advisor to Family Support Center (“FSC” or the “Company”) in its recently completed acquisition by The Speech Pathology Group (“SPG”), a portfolio company of Ridgemont Equity Partners.

Founded in 2012, Family Support Center is a leading provider of Applied Behavioral Analysis (“ABA”) services for children and their families with four outpatient clinics located in and around Colorado Springs, CO. FSC provides one-on-one, individually tailored ABA therapy, primarily in a clinic setting and adheres strictly to evidence-based practices. The Company’s clinics operate in densely populated, growing communities, and over 50% of FSC’s patients come from military families.  FSC has experienced strong growth and continues to expand its service capabilities and clinic locations. 

“I am extremely proud of the Company we built, which has positively and profoundly impacted the lives of hundreds of children and their families in the Colorado community,” said Brian Duncan, founder and CEO of FSC. “We’ve had a longstanding relationship with L.A. and the BCA team, who provided tremendous advice and guidance throughout every step of this process. I’m confident that together we have found the right buyer to continue to build on the great work we started.”

“FSC’s seasoned leadership team, leading market position and stellar clinical reputation created a highly attractive opportunity, even during these uncertain times,” added L.A. Galyon, Managing Director & Partner at BCA. “It has been a great pleasure working with Brian and the FSC team, and we expect nothing but continued success for the Company moving forward.”

ABOUT BRENTWOOD CAPITAL ADVISORS

Based in Franklin, Tennessee, Brentwood Capital Advisors is one of the South’s leading boutique investment banks, providing mergers and acquisitions and capital raising advice to privately-held, middle-market healthcare, technology and tech-enabled and outsourced services companies. BCA has served as exclusive financial advisor on transactions totaling over $6.8 billion in value in these sectors. Founded in 1999, the firm is partner-owned and has 24 investment banking professionals. For more information, please visit www.brentwoodcapital.com.

ABOUT FAMILY SUPPORT CENTER

Founded in 2012 by CEO Brian Duncan, Family Support Center provides ABA therapy to children diagnosed with Autism Spectrum Disorder in the Colorado Springs region. FSC offers evidence-based, individualized treatment for children, many of whom come from military families, and provides tremendous results for patients and their families.  For more information, please visit https://fscautism.com/.

ABOUT SPEECH PATHOLOGY GROUP

SPG is a leading school, center and home-based provider of multi-disciplinary services for children with autism spectrum disorder and other special needs. The company provides comprehensive speech and language services, applied behavior analysis therapy, behavior intervention services, and OT/PT services across several states in the Western US. The company has a 30-year history of therapeutic excellence, best in class clinical support and a workplace culture that fosters professional growth and mentorship.  For more information, please visit https://speechpathologygroup.com/

Nashville Health Care Council Presents “Financing the Deal” Virtual Panel

NASHVILLE, Tenn. (May 27, 2020) – Last Thursday, the Nashville Health Care Council hosted their annual event, “Financing the Deal: Deal-Making Trends and Strategies for Health Care Companies,” featuring expert financial executives discussing current and future investment trends. The panel participants provided inside perspectives on the state of the market, the impact of the coronavirus on deal flow and trending sectors to watch.

The conversation was moderated by Tom Wylly, senior partner, Brentwood Capital Advisors. Panelists included Geoffrey G. Clark, senior managing director, Starr Investment Holdings; Bruce Crosby, co-founder and managing partner, Health Velocity Capital; Ann Lamont, co-founder and managing partner, Oak HC/FT; and Scott Poole, partner, Ridgemont Equity Partners.

Wylly began the discussion with background on health care deal activity from the last 18 months, explaining the number and the dollar volume of deals had decreased in 2019 and, in the first quarter of 2020, health care mergers and acquisitions dropped another 10% and the dollar value of those deals was down 77%.

“So you can see the M&A market has been weakening over the last few years and was really put on life support with COVID-19,” he said. Wylly then asked the panelists to characterize their deal flow prior to the coronavirus and describe the impact of the pandemic on their portfolio companies.

Poole said the impact to his firm’s portfolio companies has varied widely depending on the business, with about half of the companies being largely unaffected. For struggling companies, they have furloughed staff and cut salaries. “Other businesses have had very different experiences,” he said. “For example, we have two health care distribution businesses, one that delivers defibrillators. Historically, defibrillator demand has grown 10% per year, but demand is down in this environment. For those customers, we’re now selling personal protective equipment. We created a whole new product portfolio of masks, gloves, gowns, hand sanitizer, wipes and more, which has filled the hole from the defibrillator demand slow-down.”

According to Crosby, digital health was a very robust market in the first quarter of 2020, with $3.1 billion invested in digital health companies, according to Rock Health. “Like most, once COVID-19 hit, we retreated and focused on our portfolio. Now we’re slowly moving out of it,” said Crosby. “We’re invested in MDLive, one of the largest telehealth platform companies. Like other telehealth companies, they’ve seen a tremendous growth in volume and benefited from the coronavirus. On the other side of the spectrum, we have companies that sell software to health systems and we expect sales to be slow for three to sixth months until hospitals get back on their feet.”

Lamont referred to the coronavirus as “an accelerant” for investment trends such as primary care, home care and digitizing health care services. “Right now, you don’t want to be in an institution like a nursing home or hospital unless you have to be. You want to stay home and have all the support at home. Just like everyone has gotten used to using Zoom, the reality is whether it’s mental or physical health, the coronavirus has changed the dynamic between the clinician and the patient.”

Clark said his firm’s health care portfolio companies took the hardest hit between mid-March and mid-April but are recovering quickly with volumes up 50% to 75% in the last four weeks. “We are seeing an aggressive snapback. The question we wrestle with is when will this start to level out? What does pandemic recovery look like? At this point no one knows the answer. The other question is what will the practice of health care look like? COVID-19 has been the biggest accelerator of change I’ve seen in 25 years of investing, not just in health care but across business processes and spending.”

Looking ahead, the panelists identified key factors needed to close new deals and valuation expectations post-coronavirus. They agreed it will take time for the financing markets and valuations to look like they did pre-coronavirus.

“From a valuation perspective, sometimes it takes time,” said Clark, who is looking for high-quality and high-growth assets and market leaders “Like the real estate market, it will take sellers time to come to terms with reasonable valuations.”

Poole indicated confidence in forward-looking projections and predictability are key. Crosby mentioned that while Zoom videoconferencing aids communication, face-to-face meetings with the management team are critical so investments may be delayed until travel habits resume. Lamont agreed and suggested the exception to that rule is investing in company executives and businesses that the firm already knows.

To conclude, the panelists identified several sectors with growth potential. Crosby expressed interest in the behavioral health and substance use disorder spaces and referenced investments with Ginger, a text-based virtual behavioral health company, and Spero Health, a Nashville-based addiction treatment organization. Poole is also interested in behavioral health, alongside specialty home infusion services and post-acute care. Clark identified tech-enabled companies and organizations that address the “pain points” of health care such as physician staffing. Lamont reiterated her interest in primary care and companies embracing digitization to expand access to care.

The Nashville Health Care Council will continue to offer relevant and timely virtual events during the COVID-19 pandemic. Register now for the next installment in the Council’s virtual series, “Health Care Brass Tacks” on Tuesday, June 2, at 11:30 a.m. Watch for more information on this and upcoming programs at healthcarecouncil.com.

About the Nashville Health Care Council

The Nashville Health Care Council is a premier association of health care industry leaders working together to inspire global collaboration to improve health care by serving as a catalyst for leadership and innovation. Since 1995, the Council has served as a trusted source for information on trends and innovations influencing the nation’s health care industry. Through regular programs, the Council provides members with unparalleled access to national and international policymakers, industry innovators, and thought leaders. 

For more information on the Council, please visit www.healthcarecouncil.com.

Brentwood Capital Advisors (“BCA”) is pleased to announce that it served as the exclusive financial advisor to Springhill Home Health & Hospice (“Springhill” or the “Company”) in its recently completed acquisition by Abode Healthcare (“Abode”).

Springhill is a high-quality provider of home health, hospice and palliative care in the Alabama Gulf Coast market, including Mobile, Baldwin and Washington counties.

“We are excited to join the Abode Healthcare team and are confident they will continue the legacy of high-quality patient care in the communities we serve,” said Bobby Wofford, President of Springhill. “Brentwood Capital’s strong industry relationships and home health & hospice expertise generated a process that yielded the best outcome for shareholders, employees and patients.”

“Springhill Home Health & Hospice has served the greater Mobile market for 19 years and has a reputation of providing high-quality clinical care,” added L.A. Galyon, Partner at Brentwood Capital Advisors. “We were pleased to serve as Springhill’s exclusive financial advisor on this important transaction and enjoyed working with Bobby Wofford and his team.”

About Brentwood Capital Advisors
Based in Franklin, Tennessee, Brentwood Capital Advisors is one of the South’s leading boutique investment banks, providing mergers and acquisitions and capital raising advice to privately-held, middle-market healthcare, technology and tech-enabled and outsourced services companies. BCA has served as exclusive financial advisor on transactions totaling approximately $6.6 billion in value in these sectors. Founded in 1999, the firm is partner-owned and has 22 investment banking professionals. For more information, please visit www.brentwoodcapital.com.

About Springhill Home Health & Hospice
Serving Mobile, Baldwin and Washington counties in Alabama, Springhill Home Health and Hospice has been providing compassionate care and support to the seriously ill and their families since 2001. The Company provides assistance and comfort care at end-of-life for hospice patients or at-home illness and injury treatment for home health patients.

About Abode Healthcare
Abode is a leading provider of home health and hospice services throughout the United States. It offers a full spectrum of palliative care and support services that are tailored to the individual needs and preferences of terminally ill patients and their families. Abode was formed in 2012 and is based in Durango, Colorado.

Brentwood Capital Advisors (“BCA”) is pleased to announce that it served as the exclusive financial advisor to Orchard Software Corporation (“Orchard” or the “Company”) in its recently announced acquisition by Francisco Partners.

Headquartered in Carmel, Indiana, Orchard is a privately-owned company specializing in developing and supporting award-winning Laboratory Information Systems (“LIS”) that enhance clinical and pathology laboratory workflow, as well as support laboratory outreach and point-of-care testing. Orchard has been a leader in KLAS rankings since 2002 and currently serves more than 1,500 multi-site and multi-specialty physician groups and clinics, hospitals, independent reference labs and other healthcare facilities.

“I am proud of what our team has built at Orchard and look forward to continued success and innovation with our new equity partner, Francisco Partners, that brings additional expertise and capital to our growing software platform”, said Rob Bush, Founder and CEO. “BCA provided sound advice throughout the process that yielded a fantastic outcome for our shareholders, employees and customers”.

“Orchard has been a trailblazer in the LIS industry, developing industry-leading products for a large, loyal customer base,” stated John Kibler, Managing Director at BCA. “It was a pleasure representing Orchard in this important transaction and working with such a high-quality company and team”.

About Brentwood Capital Advisors

Based in Franklin, Tennessee, Brentwood Capital Advisors is one of the South’s leading boutique investment banks, providing mergers and acquisitions and capital raising advice to privately-held, middle-market healthcare, technology and tech-enabled and outsourced services companies. BCA has served as exclusive financial advisor on transactions totaling approximately $6.5 billion in value in these sectors. Founded in 1999, the firm is partner-owned and has 22 investment banking professionals. For more information, please visit www.brentwoodcapital.com.

About Orchard Software Corporation

Orchard Software Corporation, founded in 1993, is a leader in the LIS industry and offers a variety of laboratory system solutions. Orchard’s products are installed in all sizes of multi-site and multi-specialty physician groups and clinics, hospitals, independent reference labs, student health centers, veterinary labs and public health organizations. Orchard serves more than 1,500 laboratories across the country, helping them improve efficiency, reduce errors and enhance integration.

About Francisco Partners

Francisco Partners is a leading global private equity firm that specializes in investments in technology and technology-enabled businesses. Since its launch 20 years ago, Francisco Partners has raised over $14 billion in capital and invested in more than 200 technology companies, making it one of the most active and longstanding investors in the technology industry.

Brentwood Capital Advisors Served as Exclusive Financial Advisor to Connecture, Inc.

Brentwood Capital Advisors (“BCA”) is pleased to announce that it served as the exclusive financial advisor to Connecture, Inc. (“Connecture” or the “Company”) and its affiliated entities in its recently completed acquisition by N. Harris Computer Corporation (“Harris”). Connecture is a portfolio company of Francisco Partners, a leading private equity firm focused exclusively on investments in technology and technology-enabled services businesses.

Headquartered in Milwaukee, Wisconsin, Connecture is a recognized leader in web-based Medicare shopping and enrollment and drug comparison tools serving payers, brokers, PBMs and the government. Connecture’s PlanCompare product is the industry’s most widely adopted Medicare enrollment solution.

“BCA, our exclusive financial advisor, played a critical role in managing a competitive process that maximized shareholder value and ultimately resulted in a transaction with the right strategic partner for the company and Connecture’s customers. This represents our second closed transaction with BCA in 2019, and we are thrilled with the outcomes of both processes,” stated Kraig McEwen, Executive Chairman of Connecture prior to closing.

“With its market leading position within a growing segment of healthcare and blue-chip customer base, Connecture represented a unique HCIT asset for potential buyers,” stated John Kibler, Managing Director at BCA. “We had the pleasure of representing Connecture on two successful transactions this year and are pleased to have found a new partner in Harris that has such a strong-track record of successfully integrating and growing healthcare companies”.

About Brentwood Capital Advisors Based in Franklin, Tennessee,

Brentwood Capital Advisors is one of the South’s leading boutique investment banks, providing mergers and acquisitions and capital raising advice to privately-held, middle-market healthcare, technology and tech-enabled and outsourced services companies. BCA has served as exclusive financial advisor on transactions totaling approximately $6.5 billion in value in these sectors. Founded in 1999, the firm is partner-owned and has 22 investment banking professionals. For more information, please visit www.brentwoodcapital.com.

About Connecture, Inc.

Provider of a web-based sales, service and process automation platform designed to streamline health insurance distribution. Connecture’s process automation platform offers a personalized health insurance shopping experience that recommends the best fit insurance plan based on an individual’s preferences, health status, preferred providers, medications and expected out-of-pocket costs. The Company’s solutions enable insurance marketplace operators to distribute health insurance in a cost-effective manner.

About N. Harris Computer Corporation

A wholly owned subsidiary of Constellation Software Inc. (TSX: CSU) that provides mission critical software solutions for the Public Sector, Healthcare, Utilities and Private Sector verticals throughout North America, Europe, Asia and Australia.