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Client Success Story: Transforming a Healthcare IT Company into a Market Leader

Overview

A Healthcare IT company with $3 million in revenue and $750,000 in EBITDA approached Attract Capital to secure acquisition financing for an aggressive roll-up strategy. The owner sought a lender who would fund acquisitions based on rollover equity value, without requiring significant cash equity.

Phase 1

Laying the Foundation for Growth

Attract Capital structured an acquisition facility based on the company’s future EBITDA, enabling simultaneous acquisitions. We raised an $8 million facility to refinance existing debt and fund acquisitions. Over two years, this drove revenue to $15 million and EBITDA to $2.5 million, all without any cash equity investment from the owner.

Phase 2

Optimizing Capital Structure

Despite strong performance, the existing lender demanded higher pricing. Attract Capital advised the client to restructure with a combination of senior and mezzanine debt, reducing the cost of capital and increasing available funding. We raised a $21 million facility to support five additional acquisitions, boosting revenue to $30 million and EBITDA to $7 million. 

We provided hands-on support in:

  • Valuation and due diligence
  • Transaction execution
  • Enhancing credibility with sellers

The client also invested in tech innovation, expanding into new markets. 

Phase 3

Scaling Further with Strategic Lending

To support continued growth, Attract Capital replaced the senior lender with a new one offering a $25 million facility. This enabled two more acquisitions and accelerated organic growth, increasing revenue to $50 million and EBITDA to $9.5 million.

Phase 4

Strategic Exit

Within one year of the final debt raise, Attract Capital advised the client on a successful sale to a strategic acquirer at an equity value of $70 million. 

Results & Impact

  • EBITDA Growth: From $750K to $9.5M (12.7x increase)
  • Equity Value Growth: From $2.5M to $70M (28x increase)
  • Total Financing Raised: $54 million over 10 years
  • Annual ROI: 149% over 7 years

Through Attract Capital’s strategic financing and advisory expertise, the client became one of the largest and most valuable healthcare RCM and IT companies not owned by private equity.  

Healthcare IT Platform

The Challenge

A Healthcare IT company generating:
  • $3M in revenue
  • $0.75M in EBITDA
wanted to execute an aggressive roll-up strategy. The owner’s requirements were clear:
  • No significant cash equity contribution
  • A lender willing to fund against rollover equity value
  • Capital capable of supporting multiple acquisitions at once
They needed a financing partner aligned with long-term scale — not short-term constraints.

Turning Future EBITDA Into Immediate Buying Power

Attract Capital structured acquisition financing based on projected EBITDA growth — not just historical performance. The first $8 million facility allowed the company to:
  • Refinance existing obligations
  • Fund acquisitions
  • Avoid injecting personal cash equity
Within two years:
  • Revenue increased from $3M to $15M
  • EBITDA increased from $0.75M to $2.5M
Growth was entirely funded by debt capital.

Lowering the Cost of Capital While Increasing Capacity

Despite strong performance, the initial lender sought higher pricing. Rather than accept rising costs, we:
  • Replaced the single-lender structure
  • Implemented a senior + mezzanine debt structure
  • Reduced the overall cost of capital
  • Increased acquisition capacity
A new $21 million facility funded five additional acquisitions and drove:
  • Revenue to $30M
  • EBITDA to $7M
We also supported:
  • Valuation strategy
  • Due diligence execution
  • Seller credibility positioning
  • Lender relationship management
The company also invested in technology innovation, expanding into new markets.

Scaling Into Industry Leadership

Over a seven-year period:
  • EBITDA grew from $0.75M to $7M (9.3x increase)
  • Equity value increased from $2.5M to $41M (16.4x increase)
  • ROI reached 149% per annum
The company became one of the largest and most valuable healthcare RCM and IT companies not owned by private equity.

Final Expansion and Exit

A new lender provided a $25 million facility, enabling:
  • Two additional acquisitions
  • Accelerated organic growth
  • Revenue growth to $50M
  • EBITDA growth to $9.5M
Within one year of the final debt raise:
  • The company was sold to a strategic acquirer
  • Exit equity value: $70M
From start to exit:
  • Equity value increased from $2.5M to $70M
  • A 30x increase

Total Impact Over 10 Years

  • $54 million in acquisition financing raised
  • Multi-phase refinancing strategy executed
  • $70 million strategic exit achieved
  • Transformed from small platform to market leader
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