Industry: Healthcare / Managed Care
Transaction: Sale to Strategic Buyer


Mountain Medical Affiliates ("MMA") is one of the country's oldest Preferred Provider Organizations (PPO) serving Colorado. When MMA's owners sought a liquidity event for the company's physician shareholders, GMB was retained to sell 100% of the company. GMB also was retained to sell MMA's majority ownership interest (52.06%) in CNIC Health Solutions, Inc., Colorado's largest independent Third Party Administrator (TPA).

MMA's shareholders included more than 300 physicians with a special interest in maintaining the culture and quality of care offered by the PPO post-transaction. Given the nature of MMA's business model, GMB employed a limited auction process targeting strategic acquirers. GMB successfully negotiated the sale of MMA to HMS Healthcare Inc., historically MMA's biggest competitor in the marketplace.

HMS, a portfolio company of KRG Capital Partners, LLC, was selected as the buyer due to its unique strategy of acquiring regional rental/access network PPOs with dominant market share. KRG is a Denver-based private equity investment firm focused on acquiring middle-market companies with significant growth opportunities.

Prior to and during the transaction process, MMA experienced significant competitive issues affecting its financial performance, yet GMB successfully closed the sale at a very attractive price to the most logical strategic acquirer.

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