ButcherJoseph Advised Neighborhood LTC Pharmacy on Employee Buyout

September 2019

VIew press release

“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.