Case Study
Based in Addison, TX, FairPay is a market leader in the specialty bill review sector for workers' compensation medical claims. Combining innovative technology and a deep understanding of federal and state regulations, FairPay allows payers to determine the fair market value of healthcare services in addition to offering a full range of services including formal dispute resolution support and provider negotiations.
In 2008, FairPay engaged Aspen to assist it in evaluating strategic alternatives with the goal of providing liquidity to its private equity investors and founding shareholders. After experiencing five years of tremendous growth, FairPay was poised for the next stage in its corporate evolution which required partners that could not only provide liquidity, but more importantly had in-depth knowledge of the industry.
The Aspen team and FairPay management worked together to develop detailed financial models and a Confidential Information Memorandum that outlined the existing and future state of the business. Once complete, Aspen approached several strategic and healthcare-focused private equity investors on a confidential basis to assess potential terms and conditions. After receiving several proposals, the shareholders decided to sell to a financial buyer that provided a detailed road map for the continued success of FairPay and also liquidity to the current shareholders.
We believe this transaction is a testament to our knowledge of the sector and our strong relationships with institutional investors in that we were able to successfully execute a transaction that accomplished the goals and objectives of our client despite the tough economic and deal environment of the 2008/2009 period.