This partnership with Excelsia Injury Care enables First Care Medical (FCM) to accelerate its growth strategy and expand superior-quality healthcare for personal injury patients in the Mountain West region.
FCM, formerly North County Medical, operates within the healthcare services industry, specifically focusing on multi-modal, coordinated care for personal injury cases, primarily resulting from auto accidents. FCM pursued a relationship with a strategic partner to accelerate its vision of serving the region.
Engagement Strategy
Cascade Partners helped the client with their initial goal of merging four separate entities into one, FCM, aiming to create a multi-modal, integrated, coordinated care organization that spanned several states surrounding Utah. This merger positioned FCM as one of the largest entities of its kind in the country, increasing its appeal to investors. The second goal was to expand FCM’s post-merger scope and scale – the Cascade team worked to facilitate the acquisition of three additional complementary practices to further broaden its geographic and modality footprint.
Strategic Considerations
Following these transactions, the Cascade team helped the owners explore three potential strategic paths: 1) securing debt refinancing to optimize the capital structure; 2) positioning the business for acquisition by a larger industry player; or 3) continuing to operate independently with a long-term growth strategy. After evaluating all options and offers, the owners decided to merge with Excelsia. The key factor in this decision was the opportunity to partner with a more mature organization that could provide the necessary infrastructure for accelerated growth and mitigate the risks associated with building the business on a larger scale with continued opportunity to participate in the value of the resultant enterprise.
Cascade Partners’ Role
Beyond offering advisory and transaction execution services, the team managed and reconciled the differing expectations of major and minority shareholders. They identified and introduced multiple investor options that addressed all three strategic paths and facilitated discussions with Excelsia, the industry’s largest participant.
The Cascade Difference
Cascade Partners demonstrated remarkable foresight by investing in the vision of FCM’s initial merger. The team provided the necessary resources to seamlessly consolidate the four original entities without charging a transaction fee, which proved highly effective. This strategic support enhanced FCM’s value, positioning FCM as an exceptionally attractive acquisition target.
The Result
The transaction with Excelsia resulted in establishing the leading provider of integrated healthcare to those injured in motor vehicle accidents in the U.S. This merger transitioned FCM from a regional to a national presence and captured short-term liquidity for shareholders while increasing the likelihood of significant returns upon the future sale of the combined entity.
Cascade Partners served as the exclusive financial advisor for First Care Medical.