CCS Growth Partners (CCS) is proud to announce that is has closed a co-investment in support of the acquisition of AlphaCord (“AlphaCord” or the “Company”). Founded in 2002 and headquartered in Atlanta, GA., AlphaCord is one of the leading providers of biomaterial banking services and performs the collection, processing, and storage of cord blood, cord tissue, placental tissue, and semen. The Company offers its products to customers through digital advertising, an in-house call center, and referrals from hospitals and doctors, and its large base of existing patients on subscription plans results in significant and predictable recurring cash flow. Cord blood, cord tissue, and placental tissue can treat numerous diseases including malignancies, anemias, inherited metabolic disorders, and deficiencies of the immune system; cord biomaterial contains hematopoietic stem cells that will always be direct blood matches for patients and increase the chances of potential matches for the patients’ relatives.
CCS Growth Partners made the co-investment in conjunction with Corbel Capital Partners (Corbel), a structured investment firm, and CSGBIO, LLC (“CSG”), an experienced operator of biomaterial banking businesses. This partnership demonstrates CCS’s ability to find quality business and creatively structure deals to be attractive to institutional investors like Corbel. The partnership between CCS, Corbel, and CSG’s operationally supportive partnership will enable the Company to further expand its marketing efforts, improve the services it provides to the marketplace, and increase its geographic reach.
CCS Growth Partners Investment Thesis
Stability Portfolio: These are companies where demand is inelastic and highly profitable across market cycles. Will often be service based companies. They typically have large payers such as Medicare, Medicaid and Insurance. These include, but not limited to home care (private pay and self-directed), home health care, behavioral health, hospice, DME Suppliers, Acute Care, Staffing Companies and more.
High Growth Portfolio: These are companies where limits to growth are minimal. They require minimal capex investment and are leveraged by technology for scale. These include, but not limited to medical devices, regenerative medicine, Business Process Outsourcing (BPO) Paas, Saas etc.
Investment Parameters and Characteristics
•Enduringly profitable: Consistent long-term profitability at a sustained above EBITDA size threshold.
•Flexible Management:
•CCS Growth Partners to come in and manage
•Leave existing management in place
•Find new management.
Size Thresholds
•EBITDA:
•Platform > $3M – $15M
•Addons: > $500k
•EBITDA Margin: > 20%
The M&A market for healthcare companies continues to strengthen in 2021 and ahead of the projected increases in US capital gains taxes. There is unprecedented capital in market, the lowest interest rates in US history and strong acquirer motivations for high quality healthcare companies. Across the continuum of care, buyers and investors are looking for well established, profitable businesses and offering strong valuations and options for management.
Do you know the current market value of your business? We do! We are here to help you plan, prepare, explore and succeed in executing your strategic options.
Contact Paragon Ventures for more information.
800-719-1555
