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 THE RESULT: Caymus Partners acted as the exclusive financial advisor to ReachOut Healthcare America, Ltd. ("RHA" or the "Company") in the sale of the Company to Sentinel Capital Partners. The Company sought a transaction that would maximize proceeds to shareholders, position RHA for future growth, and enable RHA's founders to retain a significant ownership in the Company. Caymus Partners conducted a thorough, structured, and disciplined process that included contacting nearly 100 potential investors (strategic and financial) in order to generate strong market interest and to provide RHA's stakeholders with a wide range of options. The successful transaction met all of the Company's objectives including the opportunity to partner with Sentinel Capital Partners, a well-known private equity group with an extensive amount of experience in and knowledge of the dental industry.
"The Caymus Partners team demonstrated exceptional industry expertise and a commitment to the highest levels of service and professionalism. My relationship with Caymus Partners goes back several years and when it came time to pursue a transaction, Caymus Partners was invaluable in helping us navigate our way through the most important transaction in our corporate life. Their relationships in the industry and extensive knowledge of the private equity community were critical to the success of our transaction."
Michael P. Howell, Chairman and Chief Executive Officer
ReachOut Healthcare America, Ltd.
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Company Description
ReachOut Healthcare America was co-founded in 2001 by two executives with significant experience in the dental field.
Today, the Company is the nation's largest and fastest growing provider of mobile dental services to school children and soldiers in the National Guard. Based in Phoenix, AZ, the Company operates in 24 states and has agreements with over 1,000 schools and foster programs, primarily located in metropolitan areas, to facilitate delivery of dental care to underserved youth, the majority of which are Medicaid recipients. RHA equips its affiliated dentists with state-of-the-art mobile dental equipment that is easily transportable to any remote site. Procedures include comprehensive dental treatment such as routine six-month examinations, digital x-rays, cleanings, sealants, extractions and restorative treatments.
"As a private equity investor, I was incredibly impressed with the job Caymus Partners did for their client, ReachOut Healthcare America. Their knowledge of the industry was critical in successfully guiding the company through the many phases of a complex transaction. Their focus on the details made our due diligence process smooth and efficient. I would highly recommend Caymus Partners to any management team or private equity group contemplating a transaction."
Paul F. Murphy, Partner
Sentinel Capital Partners
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Client Objective
The Company sought a transaction that would maximize proceeds to shareholders, position RHA for future growth, and enable RHA's founders to retain a significant ownership in the Company.
Challenges Overcome
Caymus Partners overcame a number of key challenges in making this transaction successful:
- Creating a Competitive Sale Process. Relying on its healthcare and dental sector expertise, Caymus Partners identified and contacted nearly 100 potential investors (both strategic and financial) with a demonstrated interest in dental management and service companies to generate strong market interest in RHA;
- Generating Attractive Terms. Caymus Partners' thorough and aggressive marketing strategy generated 27 indications of interest, including 21 submitted term sheets from interested buyers / investors, which provided substantial negotiating leverage for the client;
- Maximizing Valuation. Through a coordinated and iterative process, Caymus Partners clearly articulated the client's strengths and growth opportunities to potential investors in order to achieve the highest possible enterprise valuation for the Company while identifying a knowledgeable and experienced partner;
- Preserving the Confidentiality of the Transaction. Because several competitors were approached during the marketing process, Caymus Partners took special care to protect the client's proprietary information while continuing to be forthright and keep those potential investors engaged in the process;
- Navigating a Complex Capital Structure. RHA's capital structure included numerous family members, preferred shareholders, and option and warrant holders. Caymus Partners provided detailed analysis and guidance to ensure an optimal outcome for each stakeholder;
- Addressing an Accounting Change. Caymus Partners successfully navigated the Company through numerous challenges including certain accounting treatment in historical periods.
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