Case Study
Medical Outsourcing Services was formed in May 2000 to provide mobile PET services in the Midwestern U.S. CEO and founder Gregory Pape has over 20 years of experience in the sales, marketing and management of CT/MRI scanners, nuclear medicine, ultrasound equipment and Gamma Knife systems throughout the U.S.
By 2005, MOS had grown to become the market share leader offering PET/CT equipment in a mobile service offering to hospitals, clinics and other facilities in Indiana, Illinois, Indiana, Iowa, Michigan, Ohio, Pennsylvania and Wisconsin. Mr. Pape, like many owner-operators, realized that he had the majority of his net worth tied up in MOS and consequently approached Aspen to explore strategic alternatives for MOS.
After engaging Aspen, Mr. Pape and the team from Aspen reviewed the financials and operations of MOS in addition to discussing with Mr. Pape what his goals and objectives were on a more personal basis. After a review of the strategic alternatives and the valuations in MOS' sector, Mr. Pape decided a sale or a recapitalization was the best course of action that would satisfy both the growth objectives of the business and his own personal goals. The Aspen and MOS management then developed detailed financial models and a Confidential Information Memorandum that outlined the existing and future state of the business. Once this information was completed, Aspen approached several strategic and financial buyers on a confidential basis to assess terms and conditions.
After receiving several proposals, Mr. Pape decided that a recapitalization was the best alternative. In 2006, Mr. Pape sold 75% of MOS to a financial buyer on a debt-free basis wherein the investor and Mr. Pape both held the same equity security post closing. By partnering with Aspen on this transaction, Mr. Pape was able to diversify his net worth, retain a significant ownership position in the business and remain in his role as CEO.
In 2008, MOS again hired Aspen to assist in the outright sale of the Company to Alliance Imaging (NYSE: AIQ).
We view this transaction as a prime example of how we partner with owner-operators to secure the right partner that not only maximizes valuation but satisfies the goals and objectives of the owner.
“The Aspen team was invaluable in helping me figure out what the best course of action was for me personally and for the long-term success of my business. And when we began discussions about the outright sale of the business, it was only nature that we turned to Aspen again to assist us in our sale to Alliance. The Aspen team did great work for MOS on both accounts.”
Gregory Pape, Former CEO, Medical Outsourcing Services