Overview
Associated Home Care, Inc. (“AHC” or the “Company”), headquartered in North Andover, Massachusetts, is the leading provider of Medicaid-funded private-duty home health aide services in Massachusetts. Founded in 1991, AHC is known for its high level of client care. The Company more than tripled over a five year period through a series of six acquisitions broadening its geographic reach to encompass 12 regional offices.
AHC had developed a unique proprietary technology backbone (scheduling and information system) that provides for the efficient management of the daily interaction of its 1,500 caregivers, 5,000 clients and its 40 plus payers.
Bigelow Assignment
Bigelow advised the owner / CEO about the rapidly changing industry dynamics and escalating consolidation drivers in the home healthcare market. Bigelow was engaged to find a new majority owner that would provide AHC with the capital and expertise required to further its consolidation strategy.
Challenges
AHC had a dynamic management team that wanted to continue to lead the business with autonomy, preserve their culture, and take their model “on-the-road” outside of Massachusetts. While clearly one of the most efficient operators, AHC was being asked to grow more rapidly including acquiring other regional leaders. However, as a privately held business, they could not afford to capitalize on all the opportunities.
While Bigelow was preparing Company information to share with investors the Company was approached by another regional leader that was eager to join AHC quickly.
“We were looking for an advisor to represent us, to guide AHC and really help position us as the market leader in our space. Bigelow instantly became experts in our industry and subsequently, were able to find us the perfect partner. Our relationship and ultimate transaction became a life changing event for our company, management team and my family.” Michael Trigilio, Owner and CEO Associated Home Care, Inc.
“The effort you put in was rewarded by a second to none experience for our mutual Client. You should be proud of what you accomplished from the first meeting with Mike and his team through the final toast. I look forward to an opportunity to work with the Bigelow team again.” Donald J. Troy, CPA, P.C., Company Accountant DiCicco, Gulman & Company LLP
Outcome
Bigelow advised AHC that the strategic rationale of making another acquisition trumped the original timetable. Accordingly, Bigelow assisted on rapidly negotiating a letter of intent with the seller, obtaining financing, and closing the transaction within 45 days.
Bigelow simultaneously canvased the investor universe of strategic and private equity investors focusing on those with significant experience in the highly regulated home healthcare services ecosystem. AHC enjoyed strong investor interest and met with several highly compelled potential partners.
Ultimately, AHC chose to be acquired by Amedisys, Inc. (NASDAQ:AMED), a national “health care at home” company delivering certified nursing and hospice care to more than 360,000 patients each year. Their “new game” strategy dictated a need for a home aide business to complement their skilled nursing and hospice offerings.
AHC’s management team is now leading the private duty home aide business nationally for Amedisys. The partnership will provide tremendous resources to support the continued growth including acquisitions inside and outside of Massachusetts. AHC can now further leverage its client care mission, unique technology platform and high performance culture to a national audience.