Partnering with a Leading Healthcare Organization
Headquartered in Willoughby, Ohio, Alpha is one of the largest independent sales and service providers of advanced medical imaging equipment in the U.S. The Company has an extensive product portfolio including CT-Scanners, imaging labs, radiographic and fluoroscopic systems, and women’s healthcare products, providing medical imaging solutions to hospitals, outpatient clinics, and private practice facilities. Alpha provided an opportunity for Caymus Equity to partner with the original founders of the business, who were maintaining significant equity ownership while also continuing to lead the business post-close.
Execution of the Strategy
During our ownership period, we provided support to our management partners who executed on the value creation plan:
- Further developed reporting and strategic planning capabilities through account and region level forecasts created in conjunction with sales leadership, standardized KPI (“Key Performance Indicator”) dashboards and monthly reporting packages, and a formal acquisition pipeline to rank and track targets of strategic interest
- Completed a facility expansion project to house product laboratories for staff training, further improving staff’s familiarity with products and sales productivity
- Drove an increase in Alpha’s mix of service business, providing the company with additional stability of recurring revenue while continuing to diversify revenue streams and an expansion in overall EBITDA margins
- Fragmentation of the company’s market enabled the acquisition of two regional competitors further expanding Alpha’s geographic territory while also diversifying service offerings, vendor, and customer relationships
- Utilized the company’s high free cash flow business model to refinance high-cost subordinated debt early in the investment life cycle
As a result of early returns of subordinated debt principal and interest, Caymus Equity was able to generate an attractive return before exiting in 2020.