Overview
Founded in 2011, Q-Centrix is the leading healthcare services provider focused on the new emerging market for outsourced quality reporting measures for acute care hospitals. The Company’s nurse professionals remotely perform core measure and registry abstractions as well as concurrent core measure review for hundreds of healthcare facilities across the U.S.
Bigelow Assignment
Provide a few great potential partnering alternatives that would facilitate the founder’s rapid transition from his CEO role. The new investor must support the Company’s growth trajectory and a transaction must provide significant liquidity.
Challenges
This young Company was experiencing hyper growth (20% month) as its obviously more efficient and effective business model was rapidly adopted by target customers. Hospitals are stressed from a federally mandated shift to a quality-based reimbursement model, which has put market and compliance pressure on accurately capturing, reporting, and improving standardized quality measures.
The founder of Q-Centrix was the former CEO of Dictaphone Corporation a leading supplier of dictation, voice recognition and transcription services to businesses including hospitals. He founded Q-Centrix after failing at retirement! The Company’s rapid success forced him back into full time commitment.
“I’ve worked with several M&A advisory firms over my career. For Q-Centrix, I wanted someone who would roll up their sleeves. I can honestly say that there’s millions in value that wouldn’t have happened without Bigelow. It was a phenomenal experience from a business standpoint and also a personal standpoint. You couldn’t have scripted it any better.” Robert Schwager, Founder and CEO Q-Centrix LLC
“Rarely have I seen an M&A advisory firm so fully committed to the process from engagement, to closing and everywhere in between. Bigelow brought a level of care, sophistication and savvy to the deal that no big I-Bank could ever match and which resulted in the best possible outcome for our client.” Scott Pueschel, Partner & Leader of Business Practice Group Pierce Atwood LLP
Outcome
Bigelow executed on an engagement architecture that focused exclusively on certain healthcare investors that already believed in the key driving dynamics affecting quality departments in acute care hospitals. This led to discrete conversations with large sophisticated strategic companies as well as with experienced healthcare private equity/growth investors.
After evaluating multiple attractive partnership opportunities, Q-Centrix chose to recapitalize the business with a majority investment from Sterling Partners. Headquartered in Chicago, Sterling Partners invests growth capital in leading healthcare companies and has proven success in CEO transition situations.