Portfolio Investments

International Medical Revenue Cycle Management Company

  • Management / owners had extremely strong views on acceptable acquisition / investment partners
  • Sale process had stalled because management was not comfortable with any other buyers
  • Company performance had slipped from historic peak in prior year
  • Palladian structured a transaction to provide liquidity to exiting shareholders and enhance growth prospects for remaining shareholders / management team
  • Palladian added senior IT / operations management, implementing company-wide system upgrade, revamped compliance and upgraded staff
  • Marketing materials and processes are being revamped
  • Company competed in major new business RFPs and won two
  • Merged with competitor and replaced senior management team (mutually agreed)
  • Implemented new case management / collection system
  • Doubled EBITDA

Outsourced IT Services Company

  • Regional outsourced IT support services company needed capital and strategic assistance to buy out a retiring partner
  • Company had recently bought out another founding partner, depleting capital and thinning management
  • Due diligence demonstrated that the company had superior management and organizational infrastructure for its size
  • A special market position was the ability to service multi-billion dollar and multi-national clients despite being a small company
  • Palladian structured a transaction with cash, notes, equity and contingent payments in order to achieve management’s valuation objectives and provide ongoing incentive for the remaining senior management team
  • Capitalization designed to facilitate growth by acquisition to more fully use the depth of the management team and generate value
  • Company was enhanced by two significant acquisitions broadening its portfolio of services and clients
  • Divested in 2018

Securities Recovery Services Business

  • A large NYSE listed provider of consumer data wanted to divest a small “orphan” subsidiary
  • The subsidiary used data and other research means to locate lost owners of equity securities and other financial assets
  • Although non-core to parent company operations, subsidiary was fully integrated and reliant on the corporate infrastructure
  • Palladian entered the process mid-stream at the invitation of another private equity firm in need of business services and operating expertise
  • During due diligence, Palladian took the lead and became the sponsor of the transaction
  • Despite the small size of the company, Palladian had to negotiate a transaction that would account for the customer concentration risk, develop a comprehensive carve-out and transition plan, raise financing, and close within a short time frame
  • Palladian also had to develop and implement a plan to acquire separately the company’s Broker Dealer affiliate
  • A plan to separate systems, finance, and employee benefits from the corporate parent was implemented on time and on budget
  • Key personnel hires were made to fill important gaps in the management infrastructure
  • The Broker Dealer affiliate was separated and divested
  • The company was recapitalized at a profit 15 months after the acquisition
  • Following dramatic market volatility and changes in the industry the company was wound down

Heavy-Duty Truck Warranty Provider

  • Palladian identified a privately-owned warranty company being represented by a small intermediary; The company and its advisor had prepared no descriptive or marketing materials
  • Palladian was attracted by the strong cash flow of the warranty business and the underexploited market for the service
  • Our due diligence required the company to look at its business in new ways and we worked closely with the management team to develop the necessary data to proceed
  • Our investment thesis included the relative under-penetration of extended warranties in the heavy duty used truck market as compared to the automotive market
  • The company is the leading independent provider in the market, and is acknowledged as the “gold standard” in the industry
  • Due diligence included a full accounting and legal review, attending industry conferences, and a market review
  • We implemented enhanced IT infrastructure to improve data security and support growth
  • Our business plan increased marketing by putting more sales “feet on the street” and by substantially improving support for the dealers that sell through the service to the end users
  • A 30-60-90-day plan was mapped out and implementation was completed, followed by a strategic growth plan
  • Palladian is provided both inside and outside resources to supplement management in implementing the plan
  • Through recapitalizations and ultimately sale the investors received returns over 25x their initial investment