2nd Generation Capital, LLC, the merchant and investment banking firm affiliated with KraftCPAs PLLC, announced on Wednesday the successful acquisition of its Chattanooga-based client, Anesthesiologists Associated, P.C. (AA) by MEDNAX , Inc. (NYSE – MD). 2nd Generation represented Anesthesiologists Associated through its licensed broker-dealer subsidiary, 2nd Generation Financial, LLC. The transaction was closed and effective as of Dec. 31, 2012.
Anesthesiologists Associated is a private physician group practice of 34 anesthesiologists, 100 anesthetists and 24 other clinical and administrative staff, providing care at four hospitals and two surgery centers. Michael E. Collins, 2nd Generation’s CEO said, “We worked with a highly capable physician-led management team with true vision. We were initially engaged to assist an executive committee of the board with AA’s strategic planning. An in-depth review of options led to an intensive period of negotiations with multiple suitors. The AA team, led by President Christopher Yetter, M.D. and CEO Steven McGraw, embraced the process and were actively involved every step of the way.”
Dr. Yetter commented, “Our goal was to preserve the collegial nature of our existing physician practice while adding the resources of a strong, strategic partner, like MEDNAX, in order to allow our physicians not only to continue to prosper financially, but to also do so in an a desirable work environment.” “The 2ndG team helped us meet those goals. I believe that no physician group should embark on a sale effort without the type of professional guidance that the 2ndG team offered. They maximized the value of our practice and skillfully guided us through unfamiliar territory in the transaction arena.”
Dana Holmes, CEO of subsidiary 2nd Generation Financial, LLC, commented, “The AA leadership group truly helped make the engagement a success, by continuing to focus on a key point often lost in such negotiations. The financial aspects of such transactions are not the only important elements – even more important is the structure of the relationship between the practice and the acquirer moving forward.”
Anesthesiologists Associated CEO Steve McGraw remarked, “We selected 2ndG because of their outstanding reputation in working with large physician practices and their solid contacts within the healthcare investment world. We believe we chose well. Although any transaction of this scope is complex and includes some bumps in the road on the path to completion, Dana and Mike were able to tell us just what to expect and to help us stay focused on our objectives.”