Healthcare – Durable Medical Equipment Distributor Industry
Client
- The Company, accredited by the esteemed, Joint Commission, serves as a distributor of pediatric medical devices across seven (7) states
- The very profitable, multi-million-dollar company possesses a multitude of required licenses and certifications across more than (50) third party insurance providers
Situation
- Even with 70% payor concentration, the owners sought a 100%, all-cash buyout
- The owners required receipt of payment at the time of closing without permitting a buyer to initiate the process of transferring any of the licenses required to operate the business, prior to the closing, presenting a two-fold challenge, identifying a buyer willing to accept such terms and finding a lender willing to fund the transaction at closing without the transferring of required licenses
Result
- Aberdeen Advisors secured more than five (5) letters of intent to acquire the Company and ultimately, the Company was sold to a private investor for approximately four-and-one-half times (4.5x) adjusted EBITDA
- By leveraging its network of professional partners, Aberdeen Advisors successfully identified a lender to fund the transaction under the unprecedented terms of the seller
- The sellers received approximately 90% cash at closing and ultimately agreed to a short-term seller note which included principal and interest payments
