Therapy Management Services, Inc. (“TMS”) is a provider of outsourced, contract rehabilitation services to hospitals and physicians groups at over 45 locations in 11 states.
The owners of TMS had successfully grown the company over 22 years and sought to diversify their net worth while enhancing the growth potential of the business.
Engagement Process and Outcomes
Finding the Right Fit – Brookwood was engaged to identify buyers that could provide TMS’s shareholders with a significant liquidity event without significant disruption to existing operations. TMS was marketed primarily to strategic acquirers who could provide it with more marketing resources and a broader geographic reach. Brookwood identified and negotiated the financial terms of a transaction with EnduraCare, LLC, a provider of rehabilitation services.
Effective Management of Closing Process – EnduraCare raised financing through private equity groups MedEquity Investors, LLC, its limited partners, Halpern, Denny & Co. and senior lender CapitalSource. Brookwood led negotiations of a complex transaction structure that provided TMS’s shareholders with an attractive valuation that included cash, preferred stock, seller financing and contingent payments.
The Result – TMS’s shareholders achieved the liquidity event they sought, while maintaining important senior management roles in the combined company and becoming directors and shareholders of a much larger company with outstanding growth prospects.