Edgemont Case Study: Recapitalization of Skin and Beauty Center


Seller Highlights

  • SBC is the largest and fastest growing dermatology group in northern Los Angeles, California
  • The Company offers full-service cosmetic, medical and surgical dermatology services
    SBC owns and manages five clinics and an in-house dermatopathology lab
  • The Company is comprised of seven physicians, three physician assistants and two estheticians
  • The Company experienced year-over-year revenue and EBITDA growth for each of the three years prior to the transaction

Transaction Overview

  • Overview: On March 6, 2017 Gemini Investors announced the recapitalization of Skin and Beauty Center, Inc. (SBC) based in Burbank, California
  • Purchase Price: Private
  • LTM EV/EBITDA Multiple: Private
  • Advisors to Target:
    • Financial: Edgemont Capital Partners (Edgemont)
    • Legal: Nelson Hardiman

Key Takeaways

  • Edgemont acted as exclusive financial advisor to SBC
    • Retained: March 28, 2016
    • Entered into LOI: December 15, 2016
    • LOI to close: 81 days
  • Edgemont ran a broad, competitive process that optimally positioned the Company to extract maximum value for its shareholders
    • Significant interest from both private equity investors as well as strategic acquirers
  • Gemini Investors has plans to rapidly expand the business both organically and through acquisitions