Capitol Imaging Recapitalization

Background

Evangeline Securities (“Evangeline”) was engaged by Capitol Imaging, LLC (the “Company”), headquartered in New Orleans, LA, to run a recapitalization process for the largest provider of outpatient diagnostic imaging services (MRI, CT, X-Ray, Mammography, etc.) in the state of Louisiana
The Company, with 20 locations across the state of Louisiana and Alabama, had a 50+-year history of success with both single- and multi-modality services
The 100%-owner (the “Owner”) of the Company requested a robust auction process to recapitalize while allowing the Owner to partake in potentially exponential future growth

Process

After performing a full valuation analysis for the Company, Evangeline launched a robust auction process, personally contacting over 250 strategic and institutional players with ~150 NDA’s signed
The auction process proved extremely successful, leading to ~30 term sheets from investors around the country, thus allowing the Company to demand an optimal valuation under favorable terms and conditions

Result

The Company began a process just before the outbreak of the COVID-19 pandemic, creating substantial challenges – however, the Company returned to pre-COVID normalized numbers in August 2020, allowing for a recapitalization by Clearview Capital Partners, a Stamford, CT-based private equity firm, who wished to establish the business as a platform for multiple bolt-on opportunities
Management was extremely pleased with the auction result as Evangeline advised the Company through the tumultuous COVID-19 pandemic to a premium valuation sale