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 THE RESULT: Caymus Partners acted as the exclusive financial advisor to Receivables Outsourcing, Inc. (“ROI” or the “Company”) in the private placement of convertible debt to fund an acquisition and a special dividend payout to founding shareholders. Caymus Partners structured a financing that minimized dilution to founding shareholders, while positioning the Company for aggressive future growth. Caymus Partners also introduced to the Company a strategic financing partner (based in India), which has worked with ROI to improve profitability by utilizing outsourcing functions based in India, thus enhancing long-term value for its shareholders. In addition, Caymus Partners advised the Company on a future acquisition that expanded its services offering.
"Caymus Partners structured a security that allowed us to make a much needed acquisition while minimizing dilution and allowing for a dividend payout to shareholders. Caymus Partners was a strong fit for us—their knowledge of the healthcare industry, financial creativity and sophistication surpassed our expectations and helped us achieve our goals. They also really understood our business from a strategic perspective. I would hire Caymus Partners again."
Christopher Wunder, President & Chief Executive Officer
Receivables Outsourcing, Inc.
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Company Description
ROI is a leader in the healthcare revenue cycle management industry focused on hospitals. The Company provides billing, coding, insurance follow-up, pre-registration, eligibility confirmation and collections work.
Client Objective
ROI wanted to raise equity capital in order to grow its business and expand its services through acquisition, while paying out a special dividend to its founding stockholders. The Company’s founding shareholders wanted to minimize dilution.
Challenges Overcome
Caymus Partners overcame a number of key challenges in making this transaction successful:
- Completed Private Placement of Convertible Debt. Caymus Partners structured a private placement of convertible debt that allowed the Company to pay out a special dividend to shareholders, while allowing investors to participate in the upside of the Company;
- Identified a Capital Structure Supporting Growth and Minimizing Dilution. In conjunction with the private placement, Caymus Partners created a capital structure that allowed rapid, expansive growth, in part through acquisitions, while minimizing dilution to existing shareholders;
- Identified Capital Sources. As part of the private placement process, Caymus Partners identified numerous sources of convertible debt financing that fit the Company’s strategic profile and transaction needs; and
- Enhanced Growth through Acquisitions. Caymus Partners provided the Company with M&A advisory services in its acquisition of Langley Provider Group; specifically, Caymus Partners provided detailed financial analysis, identified a representative valuation range, assisted the Company with due diligence and negotiated favorable terms.
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