LYNX provides documentation and revenue management solutions for over 300 healthcare organizations representing more than 12 million encounters. The company's software and services are designed with the primary objective of helping its client organizations address revenue cycle management issues through improved documentation, streamlined record storage and distribution, effective coding workflow management, appropriate code assignment and valuable data analysis tools.

The Challenge

In 2005 Lynx founder and CEO, Mason Smith, decided it was time for him to retire. However, he still had a very important item to carry out before he could step into his next phase of life. Mr. Smith had built a very successful business since he started Lynx Medical Systems in 1984 and he wanted to make certain that he found the right buyer for the company. In his mind the right acquirer would offer a deal that would not only provide a good home for the business and employees but would also meet his personal, financial, and lifestyle related goals. Valuation, timing, strategic vision, and post deal considerations were of particular importance in Mr. Smith's decision to engage Arbor Advisors to sell his 21-year-old business.

The Solutions

Francisco Partners, a Silicon Valley based private equity group, acquired Lynx Medical Systems as its first acquisition in the healthcare arena. Lynx's success in the outpatient Emergency Department (ED) market was the foundation for Francisco Partners investment and the firm intends to leverage this success with additional resources so that Lynx can emerge as a leader in revenue cycle management solutions for the healthcare industry.

Arbor Value Add

• Contacted well over 100 potential strategic and financial acquirers while searching for the ideal partner
• Built strong strategic and financial interest in the company, leading to 5 different offers to purchase the company's outstanding stock
• Leveraged the market's strong interest in order to optimize both price and terms in the company's final transaction
• Worked with the company to compare and contrast its offers, while explaining the risks and rewards involved in each deal