ButcherJoseph Advised Neighborhood LTC Pharmacy on Employee Buyout
September 2019
“We are proud to have a 100% employee-owned pharmacy where everyone will share in the experience of owning a business and allow our culture of community first to thrive for generations to come.”
Scott Louderback
President, Neighborhood LTC Pharmacy
Who is our client?
- Neighborhood LTC Pharmacy (“Neighborhood”) is a leading technology-enabled institutional pharmacy headquartered in Lincoln, Nebraska.
- Neighborhood utilizes advanced robotic technology to provide weekly and monthly compliance prescription medication packaging.
- Neighborhood’s medication packs, which includes a full-color picture of the patient and their medication, provide multiple layers of verification to optimize nurses’ administration of drugs to elderly and disabled patients.
Why did Neighborhood hire ButcherJoseph?
- ButcherJoseph was engaged to structure a leveraged Employee Stock Ownership Plan (ESOP) buyout that would provide the current equity owner of the Company with the means to realize the value created in the business and meet a number of strategic objectives.
What did ButcherJoseph deliver?
- ButcherJoseph structured and negotiated a 100% ESOP buyout, providing meaningful liquidity to the selling shareholder and future equity participation to all eligible employees.
- ButcherJoseph arranged the financing to support the buyout. A full process was run providing the Company with several attractive financing packages to consider from both senior banking institutions and non-traditional lenders.
- ButcherJoseph provided critical valuation research, analysis, and materials to support the negotiation given the Company’s unique characteristics and attractive growth profile.
- ButcherJoseph coordinated the design of a durable ESOP structure, working alongside our relationships with the country’s premier ESOP service providers whose expertise and use of best practices enhance the durability of the ESOP structure once implemented.