Case Study

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Private Equity Buyout of Pharmacy Benefit Administrator

  • Location: Southeastern United States
  • Sectors: Healthcare Services, Pharmacy Benefit Administration, Business Services
  • Ownership: Privately Held
  • Situation Type: Private Equity Recapitalization

Company Overview:

Provider of pharmacy benefits administration solutions for small- to mid-sized self-insured employers and PBMs.

Situation:

Brookline was engaged by the shareholders of the company to evaluate strategic alternatives that would support a liquidity event for shareholders and position the company to capitalize on substantial growth opportunities.

Brookline's Tailored Approach:

Brookline delivered customized communications to a limited group of prospective acquirers emphasizing the significant growth opportunity and unique business model of the company. Brookline clearly articulated the value proposition of the company's near-term customer wins to achieve valuation credit. Brookline created financial models and drafted presentation materials to help clearly communicate the management team's vision for the Company going forward.

Result:

The process generated significant interest and delivered a premium result for the company. Brookline guided the shareholders to a financial sponsor partner that provided liquidity for existing shareholders and significant upside opportunity for senior management. The company received a majority investment from a leading private equity firm with significant capital committed to support the company's growth going forward. The private equity investor now has a leading platform in the high-growth pharmacy industry.

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