Houlihan Lokey Advises Physical Rehabilitation Network

Houlihan Lokey is pleased to announce that Physical Rehabilitation Network (PRN), a portfolio company of Silver Oak Services Partners, has been acquired by Gryphon Investors. The transaction closed on December 17, 2020.

PRN is the leading outpatient physical therapy provider in the Western United States. The company operates 138 clinics in 12 states (California, Colorado, Idaho, Minnesota, Montana, Nevada, New Mexico, North Dakota, Oregon, South Dakota, Texas, and Washington) and boasts more than 1 million patient visits annually. PRN offers a variety of physical therapy services, including sports rehabilitation, balance training, hand therapy, aquatic therapy, industrial rehabilitation, and post-operative PT. PRN has a unique joint venture business model that allows its physical therapist partners to share in the business's upside while remaining deeply committed to providing top-quality care. Over the past few years, the company has focused on accelerating strategic growth, including health system partnerships, and investing in a scalable infrastructure while building a diversified payor mix and widening its geographic footprint. The company was founded in 1991 and is headquartered in Carlsbad, California.

Silver Oak Services Partners, based in Evanston, Illinois, and founded in 2005, is a lower-middle-market private equity firm focused on partnering with exceptional management teams to build industry-leading business, consumer, and healthcare service companies. Silver Oak utilizes a proactive, research-led investment process to identify attractive services sectors and seek out the best potential management teams and investment opportunities. Silver Oak seeks to make control investments in leading service businesses with $15 million to $150 million in revenue. The firm is currently investing out of its fourth fund, a $500 million investment vehicle.

Gryphon Investors, based in San Francisco, is a leading private equity firm focused on profitably growing and competitively enhancing middle-market companies in partnership with experienced management. The firm has managed more than $5 billion of equity investments and capital since 1997. Gryphon targets making equity investments of $50 million to $300 million in portfolio companies with enterprise values ranging from approximately $100 million to $600 million. Gryphon prioritizes investment opportunities where it can form strong partnerships with owners and executives to build leading companies, utilizing Gryphon's capital, specialized professional resources, and operational expertise.

This transaction further strengthens and highlights Houlihan Lokey’s continued leadership position in multisite healthcare, where the firm has closed 26 transactions since 2016. Houlihan Lokey's Healthcare Group is among the largest dedicated healthcare investment banking groups in the country. In 2019, the group closed 27 transactions and was ranked the No. 1 advisor for U.S. healthcare M&A transactions by Refinitiv (formerly known as Thomson Reuters). Houlihan Lokey's Healthcare Group has closed more than 300 M&A healthcare transactions since its inception.

Houlihan Lokey served as the exclusive financial advisor to PRN.