Industry: Home Health Services
Date of Initial Investment: February 2005
Date of Exit: October 2007
Maverick Healthcare Group, founded in 1997 and headquartered in Mesa, AZ, is a leading provider of diversified home healthcare products and services in the Southwest. Maverick offers a full range of home health services including home respiratory therapy, home infusion therapy, and customized home medical rehabilitation equipment through a network of 27 branch locations in Arizona, California, Colorado, New Mexico, and Nevada. In addition, the company operated eight sleep diagnostic sites in Arizona and New Mexico.
- Maverick founders and co-CEOs sought a partner to help them execute against their strategic growth plan, by providing capital for de novo builds and acquisitions. They also desired to achieve partial liquidity while maintaining their day-to-day operational roles in the business.
- The investment represented an opportunity to acquire a majority interest in a market leading company within a fragmented growth industry and partner with a highly regarded management team who continued to hold a meaningful stake in the business.
- Throughout the course of the partnership, Halifax assisted the company in formulating and achieving multiple strategic objectives to propel the company’s growth. These initiatives included:
- Recruiting key executive talent to increase the depth and breadth of the management team
- Expanding operations into two new states via two acquisitions and 10 de novo branch openings
- Improving Maverick’s IT systems, budgeting process, and financial reporting
- Acquiring an additional branch in California to further broaden its footprint
- During the course of the investment, Halifax and management grew revenue and EBITDA by 53% and 62%, respectively, and achieved numerous operational, sales and marketing, business development, and new personnel milestones.
- After a three year partnership, Halifax successfully exited Maverick through a sale to a financial sponsor. The founders achieved their goal of attaining liquidity and creating significant personal wealth and continued to run the business following the sale.
Halifax’s investment experience, industry expertise and practical style made for a particularly successful and rewarding relationship. The results were significant growth, market share gains and geographic expansion for our company in the highly competitive home healthcare sector. In the end, we created substantially more value through our collaboration and the subsequent transaction than we could have expected from the first sale.
Thomas Martin and David Scheven, co-CEOs, Maverick Healthcare