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PE interest in Women’s Care Florida is uncertain

Another obstetrics company that hit the the auction block months ago is physician-owned Women’s Care Florida, according to five sources.

There’s uncertainty among the sources as to whether the strategic alternatives process remains ongoing or has been pulled. One source familiar with the process noted that there were differentiated views among the physician-owners and the management team.

Boutique investment firm Hyde Park Capital was retained to provide financial advice to the Tampa company, Buyouts has learned. Transactions explored include both a recap and joint venture.

Women’s Care Florida offers women’s health services through almost 70 locations across Central Florida. The group employs more than 200 healthcare providers including more than 150 physicians. Besides general OB/GYN services, the company’s subspecialty services include genetic and nutritional counseling, urogynecology, breast surgery and maternal fetal medicine.

Led by Chief Executive Andrew Mintz, the company is jointly owned by about 105 physicians, a marketing presentation obtained by Buyouts shows.

The company’s projected net revenue and adjusted EBITDA figures for 2016 were about $181 million and $60 million, respectively, the teaser shows. Projected figures for 2017 are about $201 million and $66 million, respectively, it shows.

Interestingly, the adjusted EBITDA figures used to market the company do not account for physician salaries.

A PE source that looked at WCF couldn’t get comfortable with the financial profile provided. Determining how physician costs would pan out post-transaction is extremely challenging, this person explained.

Accounting for adjustments related to physician costs, actual EBITDA for 2016 likely lies south of $20 million, this source estimated. A second source estimated its true value is close to $10 million.

Also on the market is Ares Management’s OB Hospitalist Group, which is likely to find a buyer in private equity. Buyouts reported earlier this week that the Moelis-run auction for the obstetric services company was creating a lot of noise around valuation as it heads into its second round.

Action Item: Email Hyde Park’s John McDonald

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