CASE STUDY — SELL SIDE

Sector: Healthcare
Industry: Hospice
Brightmoor Hospice, Inc.

Company

Brightmoor Hospice, Inc. (“Brightmoor”), founded in 2004 and located in Griffin, Georgia, is a provider of in-patient and in-home hospice care, and provides medical, emotional, spiritual, and bereavement support for terminally ill patients and their families.

Situation

Brightmoor’s shareholders had developed a stable, profitable hospice provider in a highly regulated environment. However, industry-wide changes to Medicare reimbursement rates as a result of the Affordable Care Act negatively impacted Brightmoor’s financial performance, and the four equal shareholders often had diverging individual expectations for the business. Brightmoor had reached a crossroads in their history. On the one hand, the owners recognized that Brightmoor could benefit from new ownership who had more time to focus on the existing growth opportunities and cost savings. On the other hand, the owners believed a buyout of an individual shareholder and a re-investment in the business by the remaining shareholders would be a superior outcome.

Advisory Role

Bravaldo Capital Advisors (BCA) was engaged by Brightmoor as its exclusive advisor to explore strategic alternatives for the business. BCA ran a dual process to simultaneously explore the possibility of a strategic sale and a shareholder buy-out, running a marketing campaign to target select hospice buyers while also developing plans for a recapitalization.

Result

Bravaldo Capital Advisors successfully obtained multiple offers for the business, but BCA ultimately advised the shareholders that the optimal choice to achieve their goals was a shareholder buy-out and recapitalization.
Bravaldo Capital Advisors

Bravaldo Capital Advisors is a boutique Atlanta based mergers & acquisitions and corporate finance advisory firm, providing independent economic and financial advice and execution services for lower middle market companies in a variety of industries with revenues typically between $10 million and $300 million. BCA offers a full range of transaction and advisory services, guiding clients through sell-side transactions and exit strategy planning, growth through acquisition, debt restructuring and corporate recapitalization. The BCA team is a senior deal team with extensive knowledge and insight into the full life cycle of M&A and corporate finance engagements.