Healthcare Roll-Up Recapitalization
Multi-Phase Founder Liquidity & Growth Capital
A two-phase transaction for a 10-state behavioral health and healthcare services platform that delivered partial liquidity to founding partners while simultaneously positioning the company for accelerated acquisition-led growth.
Situation
The founding partners of a 10-state healthcare services platform had reached a point where personal liquidity was critical, yet the business required additional growth capital to continue its acquisition strategy. A traditional sale would have disrupted operations and forfeited significant future upside. The founders needed a creative capital structure that addressed both objectives simultaneously.
Approach
Metro Equity Capital designed a two-tranche transaction structure. The first tranche delivered a $12M partial recapitalization providing immediate founder liquidity without triggering a full ownership transfer. The second tranche brought in $20M of institutional growth capital earmarked for continued add-on acquisitions. Investor documentation was structured to align growth incentives between the incoming capital partner and the founding team, preserving management continuity and operational momentum.
Outcome
Both tranches closed within a single process, minimizing management distraction. The founders received meaningful liquidity while retaining a significant equity stake in the continuing platform. The $20M growth capital was deployed into two additional acquisitions within 18 months of closing, expanding the platform to 13 states.
Deal Details
- Transaction Value
- $32M (two tranches)
- Tranche 1
- $12M partial recapitalization
- Tranche 2
- $20M institutional growth capital
- Platform States
- 10 states at close
- Deal Type
- Multi-Phase Recapitalization
- Sector
- Healthcare Services
Transaction facilitated by Metro Equity Capital. Securities offered through GT Securities, Inc., member FINRA/SIPC. Past performance is no guarantee of future results.