Client Objective

In 1989 Kathy Dodd founded The Corridor Group (TCG) as a consulting firm to home care and hospice providers in Overland Park, Kansas (a suburb of Kansas City). Dodd was later joined by Jeannee Parker Martin and, as co-owners, the two expanded the company to provide executive recruiting and educational products and services. Throughout their careers, both Dodd and Martin had been heavily involved in home care and hospice standards boards and trade associations. They recognized that new health care reform initiatives would require TCG to undergo changes to sustain growth and to take advantage of a growing market.

Dodd and Martin began contemplating TCG’s long-term future and discussed how the company could provide services to other types of health care providers, as well as expand its current market share. They considered their own long-term future with TCG and how changes in the company might affect their succession plans. Ultimately, they decided they should either find an investor with the financial resources needed to fund growth initiatives, or find a strategic buyer to help them expand into new markets.

Solution

Dodd and Martin approached Mariner Capital Advisors for help in finding a strategic investor or partner for TCG. We had extensive experience working with health care providers, and was knowledgeable regarding M&A market conditions and challenges unique to the health care industry. We leveraged this background to compile a list of nearly 500 health care-related companies they believed would have a strategic interest in TCG. We also compiled a list of more than 5,000 private equity firms, which they accessed from their proprietary buyer database. We then reached out to key individuals at each organization through a confidential marketing process that positioned TCG as a niche consulting firm with strong growth potential and an experienced management team. Our efforts drew interest from nearly 50 potential buyer candidates, with several making bids for the company.

HealthEdge Investment Partners, a private equity firm with a unique focus on the health care industry, showed great interest in TCG. We facilitated several conference calls and meetings to assess HealthEdge’s interest in TCG and to discuss their goals for the company’s future. Ultimately, TCG’s owners determined that HealthEdge could provide the financial resources and strategic relationships the company needed for growth.

Result

TCG was sold to HealthEdge Investment Partners on December 31, 2012. HealthEdge had made a premium offer for TCG and showed great enthusiasm about the company’s growth potential. Both Dodd and Martin remained with TCG to continue running the company’s operations alongside HealthEdge’s management team.

About The Corridor Group

Founded in 1989 in Kansas City by Kathy Dodd, the company provides consulting services, executive recruiting and educational products and services to the home health and hospice industries. Dodd and the company’s president and co-owner, Jeannee Parker Martin, have extensive leadership experience in the home health and hospice industries.

About HealthEdge

HealthEdge is a private equity group with an exclusive focus on the healthcare industry. With more than 100 years of health care operating experience, the firm provides financial and leadership resources to help generate superior returns for companies with enterprise values between $10 and $100 million.

This document is for informational use only and may be outdated and/or no longer applicable. Nothing in this publication is intended to constitute legal, tax, or investment advice. There is no guarantee that any claims made will come to pass. The information contained herein has been obtained from sources believed to be reliable, but Mariner Capital Advisors does not warrant the accuracy of the information. Consult a financial, tax or legal professional for specific information related to your own situation.