Transactions

New Jersey Anesthesia Associates acquired by MEDNAX

Sep. 2015

Our Client: NJAA is the anesthesiology services provider to Saint Barnabas Medical Center and Newark Beth Israel Medical Center as well as numerous surgery centers and office locations

Our Role: Edgemont Partners acted as exclusive financial advisor to NJAA in its sale to MEDNAX

Location: Livingston, NJ

Sector: Clinician Services

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Case Study

New Jersey Anesthesia Associates acquired by MEDNAX

To find and deliver the best strategic acquisition option for New Jersey Anesthesia Associates (NJAA)—an anesthesia department management and staffing company that serves two of the largest healthcare providers in the state—after they received an initial offer from a private-equity backed buyer.
NJAA’s skepticism about the initial acquisition offer they received prompted them to partner with us. After examining the offer, we were concerned about the feasibility of its earn-out component, the value of its equity component, and its singular focus on NJAA’s physician practice and exclusion of its management company. Realizing that this offer significantly undervalued NJAA, we determined the best course of action would be to sell the physician practice and management company in one transaction—and to conduct a thorough, diligent auction process that involved multiple bidders and rounds.
In addition to working with NJAA to find the right transaction legal firm to oversee the process, we generated multiple first- and second-round bids which helped NJAA maximize value for their business.
From an original pool of four strategic acquirers, MEDNAX—a healthcare organization that offers clinical services, revenue cycle management, and more to facilities across the country—came out on top with a final purchase price that was significantly higher than both NJAA’s initial private-equity offer and the first-round bids. Ultimately, the acquisition provided NJAA with a number of benefits—from greater management depth to more resources for physicians, and, of course, an increased access to capital—that enabled their organization to continue growing.
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