CASE STUDY:

Health Information Designs, Inc. 

  •  Provider of pharmacy prior authorization (PA) and utilization management solutions
  • Advanced technology for automated, real-time PA and data analytics to identify patterns of misuse or abuse
  • Identified the optimal strategic buyer
  • Structured a unique and complicated carve out transaction
  • Maximized value and achieved liquidity

Lead Bankers:  Scott Messier, Bob Maggiacomo

“Synergy was able to cut through the clutter and get a deal done. I have known Scott for several years and he always made the extra effort to truly understand our business and what we were trying to achieve. We have unique value-drivers that are perhaps difficult to articulate. Synergy was able to work with our team to put us in the best position to succeed and then execute a plan to achieve a positive result. They work tirelessly when things do not necessarily go as planned. I felt throughout the process that our interests were aligned and we collaborated as partners. Synergy truly understands the competitive landscape and works diligently towards achieving a successful outcome.”

Rob DiBenedetto, CEO, Health Information Designs

Client Profile

HID is a provider of electronic prior authorization (ePA) and population health management solutions for health care payers. The Company assists government agencies and managed care organizations through a combination of clinical expertise and advanced technology to provide pharmacy-based solutions. Founded in 1976, HID has a long and proven history of designing, implementing, and operating sophisticated ePA and drug utilization management systems for its clients.

Situation Overview

After divesting its prescription drug monitoring business, HID approached Synergy to evaluate strategic alternatives for its core business. Synergy worked with management to identify the strengths of the Company and create an effective plan to approach the marketplace. Proper strategic positioning was critical, given that one segment of the business was well-established and generating significant cash flow while another business line was less mature. Additionally, HID was affiliated with a sister company that does not operate in the health care industry, further complicating a sale. Once a strategic approach and optimal positioning was attained, Synergy quickly engaged in deal-related discussions with several carefully-selected prospects.

The Outcome

Synergy identified a unique buyer and negotiated a successful carve-out transaction. Synergy helped architect a highly compelling deal for the shareholders, providing liquidity at an attractive valuation.