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Capstone Headwaters Advises Phillips, DiPisa & Associates, Inc. and Leaders For Today, LLC on Their Sale to AMN Healthcare Services, Inc.

May 2018

Philadelphia, PA – Capstone Headwaters LLC, a leading international investment banking firm, announced that it has successfully advised Phillips, DiPisa & Associates, Inc. (“PDA”) and Leaders For Today, LLC (“LFT”) on their sale to AMN Healthcare Services, Inc. (“AMN”). The purchase price was $30 million, with potential for an additional $7 million based on future financial performance.

PDA and LFT are sister companies operating as separate legal entities, which enjoyed shared common ownership prior to the acquisition by AMN. The Companies provide human capital management solutions including executive search and interim management staffing to healthcare delivery organizations. PDA was founded two decades ago, and has built a sterling reputation as a knowledgeable and trusted executive search partner for healthcare delivery organization boards and C-suites. With offices in Boston, Atlanta, Chicago, Los Angeles, and Philadelphia, PDA works with clients to identify capable CEOs, COOs, CFOs, CMOs, CNOs, CIOs, and the like. A decade later PDA launched LFT, at the request of many of its clients, to provide interim middle and senior management staff to assist with the substantial turnover and talent shortage issues that continue to plague the healthcare sector. LFT is the one of the largest interim leadership staffing companies in New England and well regarded for its ability to successfully handle the hard-to-fill positions that hospitals struggle with and deliver quality candidates quickly. Over the last several years LFT has extended its service line to include conversions of interim leaders to permanent status as well as taking on retained searches for mid-level management positions.

PDA and LFT have developed long-standing relationships with a number of large hospital systems and highly regarded academic medical centers as well as small critical access hospitals; each of whom face unique sets of operational, financial, and competitive issues. In addition, the combination of C-suite relationships and sterling reputation have enabled the Companies to secure preferred vendor contracts with leading national systems and MSPs. PDA and LFT have served clients in a combined 33 states, with both businesses possessing a particularly strong presence and market share in the Northeast region.

"Our purpose has always been to partner with healthcare organizations in finding the best leaders for their business” said Dan Phillips, Founder and Partner of PDA. “We are thrilled to bring our expertise in executive-level searches to AMN, where together we can deliver even greater value to our clients and the ever-evolving healthcare community."

AMN (NYSE: AMN) is the leader and innovator in healthcare workforce solutions and staffing services to healthcare facilities across the nation. The Company provides unparalleled access to the most comprehensive network of quality healthcare professionals through its innovative recruitment strategies and breadth of career opportunities. With insights and expertise, AMN Healthcare helps providers optimize their workforce to successfully reduce complexity, increase efficiency and improve patient outcomes. AMN delivers managed services programs, healthcare executive search solutions, vendor management systems, recruitment process outsourcing, predictive modeling, mid-revenue cycle solutions, and other services. The addition of PDA and LFT expands AMN’s leadership placement services for the C-suite, meeting a critical need for healthcare executive teams and their boards as they navigate consolidation, migrate to value based reimbursement models, and develop ways to enhance patient care and optimize their workforce.

“Healthcare leadership search, both retained and interim, is seeing heightened demand as a consequence of high turnover and talent shortages in key leadership positions.” said Eric Williams, Managing Director of the Philadelphia-based Capstone Headwaters deal team. Mark Surowiak, Director at Capstone Headwaters, added, “With favorable growth dynamics in place, executive placement and healthcare staffing services providers are securing attractive valuations. M&A activity is quite robust, and due to the fragmented nature of these sectors we expect this wave of consolidation to continue."