Miller Johnson Represents SpendMend in its Majority Recapitalization with Morgan Stanley Capital Partners
The Transaction
SpendMend, in partnership with management and Sheridan Capital Partners (Sheridan), closed a majority recapitalization with Morgan Stanley Capital Partners. Headquartered in Grand Rapids, Michigan, SpendMend is the leading provider to tech-enabled solutions to optimize the cost cycle for the healthcare industry.
SpendMend serves more than a third of top 100 health systems and is the market leader in profit recovery services utilizing its tech-enabled platform to generate cost savings for hospitals by identifying instances of payment errors and contract non-compliance within hospitals’ operating expenses.
Sheridan originally invested in SpendMend in January 2018 and enjoyed four successful years working closely with co-founders Dan Geelhoed, CEO, and Robert Heminger, President. During Sheridan’s ownership, SpendMend grew into one of the largest platforms in the industry, both organically and through strategic M&A, including the completion of four accretive acquisitions.
Dan Geelhoed said, “We could not be more pleased with the outcome of our partnership with Sheridan. Since the very beginning, the Sheridan team invested in our organization and our people to advance our mission of helping hospitals improve patient care through the delivery of our innovative cost-savings solutions.”
Kirkland & Ellis and Miller Johnson acted as legal advisors to SpendMend in the transaction. Miller Johnson’s team included Anne Marie Carson (M&A), Dustin Daniels (M&A), Michael Penny (M&A), Chelsea Austin (M&A), Erik Daly (M&A), Mary Tabin (Employment), Matt O’Rourke (Employment), Neil Williams (Tax), Hunter Reams (Tax), Jeff Gray (Benefits), Brandon Griffith (IP), and Alise Hildreth (Litigation).
SpendMend
(www.spendmend.com) For over 25 years, SpendMend has helped leading healthcare organizations nationwide discover the full impact of financial leakage upon their organization. As the healthcare expert in audit recovery and spend visibility, SpendMend has helped hospitals improve patient care through the delivery of innovative cost saving solutions, insightful transaction analysis and improved visibility across business relationships.
Sheridan Capital Partners
(www.sheridancp.com) Based in Chicago, Illinois, Sheridan Capital Partners is a private equity firm that focuses on lower middle market buyouts and growth equity in North America. Sheridan partners with companies in provider services, healthcare IT and outsourced services, and consumer health and medical products.
Morgan Stanley Capital Partners
(www.morganstanley.com) Based in New York, New York, Morgan Stanley Capital Partners is the middle-market focused private equity team at Morgan Stanley Investment Management. The team has invested capital in a broad spectrum of industries for over two decades.
Miller Johnson’s Mergers and Acquisitions Group
Miller Johnson’s M&A practice group collaborates with clients and their advisors to structure, negotiate and close deals and to navigate the challenges that can arise in mergers, acquisitions, dispositions and other business combination or investment transactions.
Miller Johnson is top listed for mergers and acquisitions with U.S. News & World Report’s Best Law Firms and is ranked by Chambers USA. At The M&A Advisor’s national awards and the ACG M&A Deals and Dealmakers regional awards, our attorneys are consistently involved in deals honored as winners and finalists. For further information, please contact Anne Marie Carson at (616) 831-1787.