EnableComp LLC, a provider of workers’ compensation revenue-recovery services to the healthcare industry, is on the auction block, according to three sources.
The Franklin, Tennessee, middle-market investment firm Brentwood Capital Advisors is advising the privately held company, Buyouts has learned.
EnableComp generates $6 million to $8 million in EBITDA, one source estimated. A second source estimated the target’s EBITDA at sub-$5 million.
The company helps hospitals and other healthcare providers identify and capture payments for services provided to workers injured at work. The company works with more than 550 hospitals and health systems nationwide.
The most likely outcome of the process is a sale to private equity, the sources said. Riverside Partners’ Medical Reimbursement of America could be a logical buyer, as both specialize in complex third-party reimbursement services, one of the sources noted.
In was only in February that Boston PE firm Riverside Partners scooped up MRA. John Pritti of Houlihan Lokey advised MRA.
Terms weren’t disclosed, but MRA is a larger asset than EnableComp, one source noted.
MRA’s reimbursement services, like EnableComp’s, include helping hospitals and health systems resolve workers’ comp accident claims. The company also helps resolve motor-vehicle claims, plus offers underpayment identification and recovery services from both Medicare and managed-care claims.
Among the most sizable PE-backed players in the workers’ comp industry are H.I.G.’s PMSI, a provider of specialty managed care services and products to the workers’ comp industry; Apax Partners’ One Call Care Management, which coordinates and manages care for injured workers; and Onex Corp.’s York Risk Services Group, a large loss claims management firm.
EnableComp’s chairman and CEO is industry veteran Jim Lackey, who held those titles at revenue cycle management company Passport Health Communications. Passport Health was acquired by Experian Health in November 2013 for $850 million.
EnableComp operates under holding company Complete Holding Group Inc.
Representatives of EnableComp and Riverside Partners couldn’t be reached, while those with Brentwood declined to comment.
Action Item: Reach Riverside Partners’ General Partner Max Osofsky at firstname.lastname@example.org
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