The Nation’s First Medicaid Eligibility Service Provider
East coast law firm that was looking for additional sources of revenue and profits and a recurring revenue stream that created value long term. They were also looking for a strategic initiative to expand the practice beyond traditional legal work and create a Medicaid eligibility service provider. Added additional services and grew non-legal revenues to $65 million annually. At that stage, the business had gained such significant value it was ideal for a private equity recapitalization, allowing the partners a tremendous return on investment and very large capital gain distribution.
The private equity recapitalized business now had the additional growth capital needed to expand at an even faster pace, resulting in annual revenues of $120 million dollars in a very short period of time. A second capital gain distribution to the partners who had reinvested with the private equity group was almost as large as the first. However, preparation for next exit required the centralization of the business separate and apart from the law firm. This strategic advisory work helped turn a traditional law practice with an “income value” to its partners into an extremely impressive “equity value” that could be converted into cash. The business was sold to another private equity group and the process continued on.