Three Rivers Behavioral Health, LLC is the largest free-standing, independently owned acute psychiatric hospital in the Carolinas.
Situation:
- Three Rivers was purchased by a private investor group through the Charter Behavioral Systems bankruptcy in 2000. Given the Company’s positive performance and industry consolidation in 2006, the shareholders sought liquidity for their investment.
Challenges:
- The specialized nature of behavioral health services limited the buyer population to a handful of strategic acquirers, plus several private equity backed companies in the early stages of their buy and build strategies
- Convincing potential acquirers to value the operation based upon proforma adjusted EBITDA, which included significant consolidation cost eliminations and as well as proforma earnings adjustment for new Medicare reimbursement rates being phased in
- Completing the sale in a manner that allowed a recently awarded certificate of need (CON) for 32 additional acute beds to remain in full effect
Successful Solution:
- Anderson LeNeave contacted a focused group of strategic and financial buyers
- Three Rivers was sold to Psychiatric Solutions, Inc. (NASDAQ – PSYS)
