About the Transaction:

Senex Services Corporation had been purchasing charged off medical receivables for nearly a decade before it was added to the Greenfield Partners portfolio in 2009. This company originally was a lending client of Greenfield Commercial Credit in 2007. The company was fortunate to have a sound management team in place, but had been hindered by interference from multiple Private Equity owners in their efforts to coordinate a sound sales and collection strategy. With the assistance of Greenfield Partners management, Senex was able to modernize its purchase pricing and collections methods and achieve profitability.

Key Value Creation Metrics:

• Collections methods were modernized by purchasing call through technology. The upgrade in collection equipment allowed for significant reduction in staff and related costs.
• A defined pricing strategy was developed with the use of proprietary software which targets health care providers based on a range of qualities including geographic location and demographics. The improved pricing methodology increased profitability by lowering the cost paid for receivable portfolios and by increasing the speed of collections efforts.
• The company was encouraged to broaden its product offering beyond the charged off portion of medical receivables. Due to their improved collections efficiency they were able to acquire additional business at earlier stages in the receivable aging cycle from current customers.
• The financial, accounting and cash management functions of Senex were simplified and reorganized. These steps allowed the company to reduce the overall cost of the functions and provided the company with additional tools to produce the company’s improved profitability and allowed management to focus on future sales opportunities.
• Greenfield Partners management was able to leverage the progress of the organization to acquire a bank line of credit to support future expansion of the business.