Houlihan Lokey Advises Community Medical Services

Houlihan Lokey is pleased to announce that Community Medical Services (CMS), a portfolio company of Clearview Capital LP, has been acquired by FFL Partners, LLC (FFL) and Two Sigma Impact.

Founded in 1983 and headquartered in Scottsdale, Arizona, CMS is a leading provider of medication-assisted treatment (MAT) for individuals afflicted with opioid use disorder (OUD). The company is a CARF-accredited substance use disorder treatment program, providing outpatient MAT via medication, counseling, and community-based services across more than 50 clinics across nine states. CMS has been at the forefront of expanding access to treatment services, including opening the nation’s first 24-hour Opioid Treatment on Demand (OTOD) center in Phoenix in 2017.

CMS was a portfolio company of Clearview Capital, a private investment firm specializing in the acquisition and recapitalization of lower-middle-market companies in North America in the business services, healthcare services, manufacturing, and specialized distribution industries. Since inception, the Clearview Capital team has completed more than 150 transactions in a wide variety of industries. Clearview Capital is currently making investments from Clearview Capital Fund IV, LP, a $550 million vehicle. The firm is headquartered in Stamford, Connecticut, and has an additional office in Los Angeles.

Founded in 1997, FFL Partners is a San Francisco-based private equity firm with over $5.0 billion under management. FFL pursues thematic investments in business services and healthcare services partnering with exceptional management teams where the firm’s high-engagement operating model and extensive network can help accelerate growth and unlock value. Growing its businesses has provided over 75% of the value created by FFL for its investors.

Two Sigma Impact is a business of Two Sigma. Its mission is to combine active, principled ownership and data science with the goal of achieving superior returns and positive social outcomes. The Two Sigma Impact team is focused on workforce impact, where it anticipates innovative and thoughtful investments in humans will lead to an enhanced employee experience, productivity, and long-term financial returns. As part of Two Sigma, Two Sigma Impact has access to expertise in data science, technology, and a range of corporate specialties and seeks to support its portfolio companies with those resources.

Houlihan Lokey served as the exclusive financial advisor to CMS.

This transaction further strengthens and highlights Houlihan Lokey’s continued leadership position in healthcare M&A. Houlihan Lokey’s Healthcare Group is among the largest dedicated healthcare investment banking groups in the country. In 2020, the group closed 22 transactions and was ranked the No. 1 M&A advisor for U.S. healthcare transactions under $1 billion by Refinitiv. Houlihan Lokey’s Healthcare Group has closed more than 300 M&A healthcare transactions since its inception.