2017
Founded in 1977, basys offers enterprise-level, mission-critical benefits administration solutions designed specifically for the Taft-Hartley multi-employer market. The Company has over 70 customers, comprising more than 1,500 health, welfare, and pension plans across the U.S. and Canada. In 2009, basys appointed a new CEO, who brought expertise in managing (and transacting) growth businesses, as well as senior private equity investment experience.
Initial Engagement – How and When?
In early 2017, basys engaged ST Advisors for a Strategic Assessment, working with basys’ CEO to evaluate the potential for a successful transaction in light of the prevailing market environment. Collaborating closely with the CEO throughout, we began our research. Upon completion, we shared our assessment of the business (including its offerings, value propositions, growth potential, differentiators, etc.), the company’s potential valuation, and our view of likely buyers. We weighed timing options (sooner vs. later, and the risks and potential rewards of each), and analyzed investment banking firms for likelihood of success and compatibility with the company, its market, and its goals for the transaction.
Subsequent Engagement – Going to Market
Upon completion of our initial engagement, basys decided to aggressively pursue a transaction, once again engaging ST Advisors — this time, to support the company throughout the process. We prepared a blinded and confidential business summary, reaching out to six investment banks to assess their interest, and joining basys’ CEO and her CFO for five banking presentations (“pitches”).
We subsequently worked alongside the selected banking team to help develop marketing materials, review the financial model, identify and analyze growth opportunities, broaden the list of potential buyers, and ensure a strong (and well-delivered) management presentation.
As the field narrowed to a final set of bidders, we worked with basys to help assess terms and evaluate potential financial partners. Perhaps more importantly, as we worked closely with the bank, we remained engaged with and available to the CEO and her team, working with all parties to help keep all interests aligned and ensure a smooth and worry-free transaction.
In July 2017, basys was recapitalized by healthcare-focused private equity firm WindRose Health Investors, with the entire senior leadership team retained to continue running the business.
“When considering how to best grow and scale my business, I turned to ST Advisors to collaborate with me and my team on an assessment of basys and its strategic alternatives. Working with Ben and Michelle was essential in helping me plan what became a process for recapitalizing basys. They were integral in helping me to create a deal team for basys, resulting in a successful recapitalization that exceeded expectations. Ben and Michelle were there as my trusted advisor / partners throughout the entire process, which allowed me to focus on growing my business and greatly reduced the stress of finding a new financial partner. While I’d previously both sold a business as its CEO, and also worked as a senior private equity investor, working with ST Advisors was a great decision for me and my company.”
