Parthenon kicks off auction for anesthesia RCM firm Abeo

  • Company posts $14 mln – $15 mln of Ebitda
  • Parthenon formed Abeo in 2008
  • Other recent RCM M&A: Intermedix, Bolder Healthcare

Parthenon Capital is exploring the sale of Abeo, the specialized anesthesia revenue-cycle-management firm it created about a decade ago, four sources told Buyouts.

Houlihan Lokey has been retained to advise Abeo, the sources said, one of whom added that a sales process launched last week.

Abeo is being marketed off of Ebitda of about $14 million to $15 million, the sources said.

Parthenon’s investment in Abeo dates to January 2008, when the middle-market-focused firm simultaneously merged three RCM companies focused in anesthesia. Abeo in October 2008 subsequently added Pasadena Billing Associates.

Abeo, Irving, Texas, provides medical-billing services to anesthesia practices, hospitals and surgery centers in more than 40 states. The company offers revenue cycle services, practice management services, medical transcription and support as well as anesthesia coding and billing software.

Co-Founder Steve Avery serves as president of Abeo.

Parthenon, with offices in Boston and San Francisco, has been an active investor in healthcare companies offering technology, payment services and data and analytics services.

In recent healthcare exits, Parthenon in March 2017 scored about $525 million, or about 15x Ebitda, for Bracket Global, sources told Buyouts at the time. It was Genstar Capital that ultimately prevailed in the hotly contested Jefferies-run auction for the provider of technology-driven clinical-trial-support services.

Parthenon last year also exited its investment in health-engagement company Eliza Corp, whose William Blair– and FT Partners-run auction ultimately produced a $170 million sale to HMS Holdings Corp.

In recent activity in the RCM universe, Edgewater FundsJZ Capital Partners affiliate recently concluded its William Blair-run auction for Bolder Healthcare via a sale to Cognizant earlier this week, saying it would realize about $108 million in gross proceeds.

The deal followed Thomas H. Lee’s sale of most of Intermedix to R1 RCM in a $460 million deal. THL subsequently spun off the remaining emergency preparedness and response division, renaming it Juvare.

Parthenon Managing Partner and Co-CEO David Ament serves on the board of Abeo.

Representatives of Parthenon and Houlihan Lokey declined to comment.

Action Item: Get in touch with Parthenon’s David Ament at davida@parthenoncapital.com.

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