Archive for category: Firm Announcements

MIAMI – March 21, 2025– Cassel Salpeter & Co. (“Cassel Salpeter”), an independent investment banking firm that provides advisory services to middle market and emerging growth companies in the United States and worldwide, announced that it has successfully facilitated the sale of Sunbelt Medical Financial LLC (“Sunbelt Health”), a provider of outsourced healthcare receivables management and revenue cycle management (“RCM”) services, to Unified Health Services, L.L.C. (“UHS”), a portfolio company of Reynolda Equity Partners (“Reynolda”).

Headquartered in Fort Lauderdale, Fla., Sunbelt Health is a specialty healthcare receivables management company with more than 30 years of experience in collecting complex and international claims on behalf of its healthcare provider clients. The company works with hospitals, clinics, physicians, and health systems to facilitate and expedite payments from both third-party payors and self-pay patients.

Based in Memphis, Tenn., UHS provides end-to-end RCM services to hospitals, surgery centers, and health systems. The company specializes in managing workers’ compensation claims and offers solutions that enhance workflows, eliminate inefficiencies, and maximize reimbursement from complex claims.

“We’re thrilled to have successfully facilitated this strategic transaction between Sunbelt Health and UHS,” said Cassel Salpeter Chairman James Cassel. “The complementary strengths of both organizations create a compelling opportunity in the complex claims management space. This partnership positions the combined entity for enhanced growth and expanded service capabilities, delivering greater value to healthcare providers and the complex claims management industry.”

“We are delighted to see Sunbelt Health become a part of the UHS and Reynolda family of companies because of both the strong cultural and strategic fit between the organizations. We were impressed by the depth and breadth of the buyers’ due diligence and benefited greatly from the support of the Cassel Salpeter team throughout the process,” said previous owner, Jon Gordon of Palladian Capital Partners.

“We are looking forward to working together with UHS. This partnership marks an important new chapter for Sunbelt Health, allowing us to combine our deep expertise in international health claims resolution with UHS’s industry-leading capabilities in workers’ compensation health claims. Together, we will enhance our ability to provide comprehensive complex receivables management solutions to our clients, while continuing our commitment to excellence in service and innovation. We also extend our sincere appreciation to our investment banking partner, Cassel Salpeter, whose guidance and expertise have been instrumental in facilitating this exciting new chapter for Sunbelt Health” said David Agarth, CEO of Sunbelt Health.

Cassel led the Cassel Salpeter team with the assistance of Senior Associate Edward Kropf, Analyst Cody Evans, and external advisor Will Fleming of Chimney Trail Partners.

The Sunbelt Health team was led by Agarth, with assistance from Kenneth Esbin, Jessica Blake, Kathryn Cook, and Victor Mehra, and support from owner Gordon.

Edward Stevenson, Michelle Delaney, and Fady Shenouda of Chiesa Shahinian & Giantomasi PC, served as counsel for Sunbelt Health.

Michael Reece and Trey Hensley of UHS, along with Scott Snow and Cam Mulhall of Reynolda Equity Partners, served as the investment team.

Brian Mesibov, Seth Walker, Natalie Hilmandolar, John Evans, Whitney Engen, Alexis Roeber, and Emily Mann of Moore & Van Allen, served as counsel for the UHS and Reynolda team.

Thinking of doing a continuation fund? Let us help with the fairness or valuation opinion.

Cassel Salpeter is a market leader in providing fairness opinions and valuation opinions, including providing various fairness opinions and valuations in connection with a continuation fund. Our advisory services team provides high quality and defendable deliverables to executives, boards, committee members, PE funds and their GPs, to fund advisory committees, owners and other interested parties in a variety of contexts and situations and have issued over 225 fairness or solvency opinions on transactions ranging from simple acquisitions, related party transactions, and sales to highly complex transactions. In addition, our team has completed over 675 valuation assignments covering a broad range of valuation services and requirements.

What was once seen as a path for tradability for an underperforming or difficult-to-exit portfolio company because of poor timing, has now become an increasingly attractive way to manage and extend the profitability of a fund’s best performing portfolio companies, while giving the LPs a liquidity opportunity.

A continuation fund is an alternative to a more traditional exit which involves a private equity fund selling one or more portfolio companies to a newly formed continuation fund that is formed for the purpose of acquiring or retaining these companies to be managed by the same sponsor. This trend is attributable to several factors, including the slowdown in the M&A and IPO market (reducing traditional exit opportunities), lower valuations, and the rise in the average holding period of portfolio companies in the United States, which has increased to 6.4 years, up materially from 5.1 years in 2021, according to PitchBook.

A continuation fund can provide a liquidity event for the limited partner investors in the original fund, but also offers the ability to not sell at what the GP might believe is an inopportune time. The formation of a continuation fund enables sponsors to keep well performing investments with additional valuation potential, while providing time for underperforming investments to stabilize or increase in value before an exit and gives the limited partners the opportunity to either roll over their equity or the option to sell their interest.

The increase in these fund-level affiliate transactions, which is estimated to have more than doubled as a percentage of overall sponsor-backed exits from 2020 to 2023, from 5% to 12%, according to Jefferies’ Global Secondary Market Review, presents challenges related to potential conflicts of interest. Primarily, private equity firms sit on both sides (buy and sell) of the transaction. As continuation funds have grown in popularity over recent years, the path forward, strategy, legal requirements, and diligence have evolved alongside the growth. Cassel Salpeter can help navigate these nuances.

In 2023, the SEC and ILPA issued new rules and guidance with the purpose of increasing transparency and ensuring processes are in place to limit inherent conflicts of interest. These mitigation methods include a requirement that a fairness or valuation opinion be obtained in connection with GP-led continuation fund transactions.

A fairness opinion is often considered the preferred financial opinion standard because it directly addresses the consideration to be received by a specific selling party (or to be paid by a specific buying party) in a transaction. A valuation opinion is conducted with a similar process and level of rigor as a fairness opinion but affords additional flexibility as to the securities or asset(s) addressed by such valuation conclusions.

Under the new regulations, these opinions are now required to be part of the corporate governance utilized in continuation fund transactions. By standardizing the use of valuation and fairness opinions, these regulations not only bolster investor confidence, but also promote ethical conduct within the industry. These consistent and transparent procedures facilitate the protection for both general and limited partners.

Cassel Salpeter monitors changing regulations and remains current with guidance and best practices recommended and used by the industry. We pride ourselves for understanding and respecting the process and specific needs of each client and situation. We are here to help. Contact our team members if you have any questions or if we can assist you in the process.

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MIAMI – April 23, 2024 – Cassel Salpeter & Co. (“Cassel Salpeter”), an independent investment banking firm that provides advisory services to middle market and emerging growth companies in the United States and worldwide, today announced that it has successfully facilitated the sale of substantially all of the assets of Intergalactic Therapeutics Inc. (“Intergalactic”), a developer of non-viral gene therapies initially targeting ophthalmic diseases, to Aldevron LLC (“Aldevron”), a subsidiary of Danaher Corp. (NYSE: DHR).

Headquartered in Boston, Intergalactic was focused on overcoming limitations of gene transfer by combining synthetic biology and precision engineering. Their technology platform enables the broad application of non-viral gene therapies by developing tunable, persistent and safe non-viral DNA in vivo and was on track to submit IND-enabling studies for its lead program in 2024.  

Based in Fargo, N.D., Aldevron is a developer of biological products, which include plasmid DNA, nucleic acids, proteins, antibodies and other related products which are used extensively in gene therapy and gene editing. These products enable companies to manufacture novel treatments for a wide range of indications, including cancer, infectious diseases and rare diseases.

“We were very pleased to maximize the value of the assets for the estate, holding an auction with over 50 bids,” said Cassel Salpeter Managing Director Philip Cassel. “The collective team effort and attention to detail allowed us to achieve this positive result.” 

The Cassel Salpeter team was led by Managing Directors Philip Cassel, Ira Leiderman and Chairman James Cassel, with the assistance of Associate Tahz Rashid.

“CS was great to work with on this engagement,” said Intergalactic President Charles Allen. “The team worked under aggressive timelines to run a thorough process with extensive outreach to prospective bidders. I am thrilled with the outcome providing a greater return to the estate.”

John Madden, a principal of Emerald Capital Advisors, served as independent director for the debtor.

Harold B. Murphy, Andrew G. Lizotte and Leah A. O’Farrell of Murphy & King PC, served as counsel for the debtor.

George W. Shuster Jr. and Benjamin W. Loveland of Wilmer Cutler Pickering Hale and Dorr LLP, served as counsel for the buyer.

About Cassel Salpeter & Co.:

Cassel Salpeter & Co. LLC is an independent investment banking firm that provides advice to middle market and emerging growth companies in the United States and worldwide. Together, the firm’s professionals have more than 100 years of experience providing private and public companies with a broad spectrum of investment banking and financial advisory services, including: mergers and acquisitions; equity and debt capital raises; fairness and solvency opinions; valuations; and restructurings, such as 363 sales and plans of reorganization. Cofounded by James Cassel and Scott Salpeter, the firm provides objective, unbiased, results-focused services that clients need to achieve their goals. Personally involved at every stage of all engagements, the firm’s senior partners have forged relationships and completed hundreds of transactions and assignments nationwide. The firm’s headquarters are in Miami. Member FINRA and SIPC. More information is available at www.CasselSalpeter.com

With over a decade of providing superior investment banking and financial advisory services, Cassel Salpeter & Co. remains committed to leveraging our market knowledge and proven expertise and experience to benefit our clients, relationships, and associates with successful outcomes.

MIAMI – Dec. 11, 2023 – Cassel Salpeter & Co., an independent investment banking firm that provides advisory services to middle market and emerging growth companies in the United States and worldwide, today announced that it has successfully facilitated the sale of certain assets of Athenex, Inc. (“Athenex”), a broadly diversified global biopharmaceutical company. 

Assets related to the generic injectable business were sold to Sagent Pharmaceuticals, Inc. (“Sagent Pharmaceuticals”), a developer and manufacturer of specialty injectable pharmaceuticals. Accounts receivable related to the generic injectables business were sold to Oaktree Capital Management, LP. Assets related to the Orascovery oral cancer therapy platform were sold to C-MER Specialty Group Limited (HKG:03309).  

Athenex was dedicated to the discovery, development and commercialization of novel therapies for the treatment of cancer and operated a specialty pharmaceuticals business (“APD”) that sourced products through licensing agreements with global partners. The APD division marketed generic injectables in vials, bags and pre-filled syringes. The Orascovery platform reformulated parenteral chemotherapeutic agents into oral dosage forms.  

Headquartered in Schaumburg, Ill., Sagent Pharmaceuticals offers a broad range of products across anti-infective, oncology and critical care indications in a variety of presentations, including single and multi-dose vials and ready-to-use pre-filled syringes and premix bags.

“The Athenex team had built an impressive generic injectables business and was at the forefront in the development of oncology therapies, but was unfortunately caught up in the unfavorable conditions presented by the broader biotech market before they could reach their ultimate goal,” said Cassel Salpeter Managing Director Philip Cassel. “By leveraging our healthcare domain expertise and working closely with the highly regarded management team and all-star cast of professionals, we were fortunate to achieve a positive result and monetize many of the assets.”

The Cassel Salpeter team was led by Managing Directors Philip Cassel, Ira Leiderman, and Chairman James Cassel, with the assistance of Associate Tahz Rashid.

“Phil and his team were instrumental in capturing as much value for the assets as possible during a very difficult time,” said former Chairman and CEO of Athenex Dr. Johnson Lau. “I am confident that the best possible outcome was achieved as they put forward a fully exhaustive effort to educate potential buyers on the value of our different lines of business.”

Nick Campbell of Meru, LLC, acted as chief restructuring officer. Devin Battiston and Samier Saleem of Meru, LLC were restructuring advisors to Athenex.  

Richard Pachulski, Shirley Cho, Debra Grassgreen, Maxim Litvak, Benjamin Wallen, James O’Neill, Cia Mackle and Richard Gruber of Pachulski Stang Ziehl & Jones LLP were counsel for the debtor. 

Phillip Delmont of Harter, Secrest & Emery LLP was special counsel for the debtor.  

About Cassel Salpeter & Co.:

Cassel Salpeter & Co. LLC is an independent investment banking firm that provides advice to middle market and emerging growth companies in the U.S. and worldwide. Together, the firm’s professionals have more than 50 years of experience providing private and public companies with a broad spectrum of investment banking and financial advisory services, including: mergers and acquisitions; equity and debt capital raises; fairness and solvency opinions; valuations; and restructurings, such as 363 sales and plans of reorganization. Cofounded by James Cassel and Scott Salpeter, the firm provides objective, unbiased, results-focused services that clients need to achieve their goals. Personally involved at every stage of all engagements, the firm’s senior partners have forged relationships and completed hundreds of transactions and assignments nationwide. The firm’s headquarters are in Miami. Member FINRA and SIPC. More information is available at www.CasselSalpeter.com

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Editor’s note: Interviews available upon request.