Transaction Overview

• The Lenox Group was engaged to sell a healthcare technology business focused on the acute care setting.  Four entrepreneurs founded the Company and grew the business to 150 "blue-chip" hospital clients including Northwestern Memorial Hospital, Stanford University Medical Center, Cedars-Sinai Medical Center, Rush University Medical Center, Advocate Health Care and Novant Health.  HealthCom is a leading provider of patient billing software and transaction processing services for healthcare providers and through its network touches approximately 35 million patients nationwide annually.
• Advised management on valuation and structuring of sale.
• Enabled management team to secure management positions with a Fortune 100 integrated healthcare provider.

Transaction Process

• The Lenox Group prepared a descriptive memorandum and an investor presentation describing the investment opportunity.  The memorandum highlighted the key investment considerations, the company's history, product lines, operations, sales force, marketing initiatives, industry dynamics, and management team backgrounds.  The investor presentation was used during meetings with management and included additional details regarding the company's growth initiatives and projected revenue/costs associated with these opportunities.
• The Lenox Group contacted several potential equity sponsor groups and over 50 strategic acquirers, sent the memorandum to approximately 25 qualified, interested parties, held meetings with six strategic acquirers, received four term sheets thus creating an auction environment and an extremely competitive process.  Selected McKesson Corp., a leading integrated healthcare provider and negotiated a purchase price higher than two times trailing revenue.

Transaction Benefits

• Maximized value to shareholders through a competitive process.
• Negotiated employment contracts for senior managers to join McKesson in senior roles.