Houlihan Lokey Advises Results Physiotherapy

Houlihan Lokey is pleased to announce that Results Physiotherapy (Results), a portfolio company of Sterling Partners (Sterling), has been acquired by Upstream Rehabilitation (Upstream), a portfolio company of Revelstoke Capital Partners (Revelstoke). The transaction closed on August 2, 2021.

The transaction places Upstream as the largest pure-play outpatient physical therapy provider in the U.S., with Results clinics expanding Upstream's portfolio to over 1,000 owned and managed clinics across 28 states. Upstream's approximately 3,500 providers perform over 5 million patient visits annually.

The Results acquisition is Upstream's largest acquisition to date and adds even greater scale, network density, and capabilities to the Upstream platform, all of which position Upstream's patients and stakeholders to continue benefiting from the shift to low-cost care settings and value-based care models.

Headquartered in Nashville, Tennessee, Results Physiotherapy is one of the largest and fastest-growing physical therapy companies in the U.S., operating a network of over 200 clinics in nine states and treating more than 125,000 patients annually. The company prides itself on its commitment to clinical excellence through employee training and clinical emphasis on individualized treatment through manual therapy, exercise, and education, ensuring evidence-based care for each patient.

Founded in 2004, Upstream Rehabilitation is a portfolio company of Revelstoke Capital Partners and is the leading pure-play outpatient physical therapy services provider. Headquartered in Birmingham, Alabama, the company operated more than 865 owned and managed locations across 28 states prior to the acquisition. The company provides a comprehensive suite of outpatient and specialized physical therapy services through a network of strong regional brands, including the following: BenchMark Physical Therapy, Drayer Physical Therapy Institute, Peak Physical Therapy, SERC Physical Therapy, Integrity Rehab Group, and more.

Revelstoke is a private equity firm formed by experienced investors who focus on building industry-leading companies in the healthcare and related health and wellness sectors. Revelstoke partners with entrepreneurs and management teams to execute on a disciplined organic and acquisition growth strategy as it strives to build exceptional companies. Revelstoke is based in Denver, Colorado, and has approximately $3.1 billion of assets under management. Since the firm's inception in 2013, Revelstoke has completed 109 acquisitions, which include 21 platform companies and 88 add-on acquisitions.

Sterling Partners is a diversified investment management platform founded in 1983 and based in Chicago. The firm started with four young entrepreneurs who went on to build one of Chicago’s most prominent private equity firms. Today, the firm has expanded beyond its strong private equity practice into several other investment strategies. Complementing its institutional fund practice, Sterling invests in a wide variety of companies in various stages of growth—from early-stage, high-growth businesses to mature, profitable companies—on a deal-by-deal basis. These investments cross several industries, and the firm makes control, non-control, and preferred equity investments. Sterling adds value to its portfolio companies and the founders with whom it partners with its entrepreneurial roots, deep domain expertise, focus on transformational growth, and access to world-class executive talent.

This transaction further strengthens Houlihan Lokey’s leadership position in multisite healthcare, having advised on 68 transactions since 2016. The transaction also represents Houlihan’s third deal in the outpatient physical therapy sector in the past nine months. 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 advisor for U.S. healthcare M&A transactions under $1 billion by Refinitiv.

Houlihan Lokey served as the exclusive financial advisor to Results Physiotherapy and assisted in initiating, structuring, and negotiating the transaction on its behalf.