Leading Long-Term Care Pharmacy Operator | SALE
Frontier’s client achieved its unique sale objectives selling to LML Capital and distributing all sales proceeds upon closing
Frontier’s client, a family office investment trust, made a private equity investment of a controlling interest in a long-term care pharmacy that served developmentally disabled patients in long-term care facilities (the “Company”). Under the family office’s ownership, the Company bolstered its management team and professionalized the business through increased processes, systems, and controls.
The family office sought to monetize its investment in the pharmacy operator, in part, because the family office’s investment objective changed and because it wanted to distribute the sale proceeds to the beneficiaries of the family office investment trust immediately after the closing.
Frontier created and managed a successful sell-side marketing process which included both strategic and financial buyers. To accommodate the objectives of the Company’s owners, Frontier (i) requested that potential buyers’ proposals be structured as all-cash-at-closing and (ii) requested the selected buyer to obtain representation and warranty insurance to serve as the buyer’s primary source of post-closing indemnity. As a result of the process, the family office was able to successfully sell the Company to LML Capital, choosing an all-cash-at-closing offer and requiring the buyer to obtain Rep &Warranty insurance covering the post-closing indemnity. As a result, the family office was able to achieve its objectives of monetizing its investment and distributing the sale proceeds immediately after closing.