Jun 13, 2024

Capstone Partners Advised Nyman Associates on its Sale to Point Quest

Capstone Partners advised Nyman Associates—a leading regional provider of school and home-based behavioral health, mental health, and therapeutic services to children with special needs, Autism Spectrum Disorder (ASD), and developmental/behavior issues—on its sale to Point Quest.

With an experienced and passionate staff of speech-language pathologists, behavioral analysts, occupational and physical therapists, paraprofessionals, and school psychologists, Nyman provides a comprehensive multi-disciplinary approach to addressing the full gamut of behavioral, allied, mental health, and academic support challenges facing schools and early intervention agencies. Dedicated to clinical excellence, Nyman invests significant resources in professional development, mentoring programs, and establishing relationships with universities with innovative programs in communication sciences, disorders, and behavioral health.

When it came time to select an investment bank to help us navigate the uncharted (to us) waters of M&A, the Capstone team was a definitive choice due to their deep understanding of our specific space and experience helping many similar businesses find the right partner. The convenience of having a wide variety of experts and resources made available to us and managed via a single point of contact can’t be overstated. In the world of Speech-Language Pathology, the CCC acronym stands for Certificate of Clinical Competency. Capstones’ Cs are Competence, Calm, and Confidence.

Gary WeberCEO, Nyman Associates

In 2022, Point Quest received a growth investment from Avesi Partners, a leading private equity investment firm focused on partnering with lower-middle market, privately held, and family-owned businesses in healthcare and business services. Point Quest is a leading provider of adolescent behavioral health and special education services primarily serving K-12 school districts. Nyman Associates offers districts a differentiated, full continuum of behavioral health and special education services by providing scarce personnel, including speech language pathologists, occupational therapists, mental health therapists, paraprofessionals, and other specialists, who facilitate the proper care for each student with special education needs. Since receiving growth capital from Avesi Partners, Point Quest has completed five acquisitions and has expanded its presence from its home state in California to Arizona, Colorado, Oregon, Washington, Minnesota, Illinois, and now Pennsylvania and New Jersey.

“Nyman has a proven track record of driving substantial growth in existing markets by expanding services and growing share of clients’ spend, as well as strong retention and relationships with school districts and early intervention agencies. We believe that Point Quest represents an ideal partner for Nyman with the like-minded vision, resources, and capital to foster Nyman’s continued growth, maintain its clinical reputation and child-centric focus, and expand its client and geographic reach.  Both organizations share the same dedication to delivering quality therapeutic services and making a difference in the lives of children with special needs. Additionally, mindful of the high unmet need for services, both organizations have made significant investments in people, training, and tools to enhance clinician and client support and delivery of therapy in school, early intervention settings, or via teletherapy. Given the shared values and commitment for providing the highest quality of care, Point Quest was the clear, preferred partner for Gary and the Nyman team,” commented Eric Williams, Managing Director of the Philadelphia-based Capstone deal team.

“This is an exciting opportunity for us to expand our presence to the east coast and we are thrilled to have Gary and his team join the Point Quest family. Nyman is an invaluable partner to the school districts and early intervention agencies they serve, and we look forward to helping them reach more students and families as we grow our east coast presence,” added Ronda Jaggers, Co-Founder and CEO of Point Quest.

Demand for behavioral and special education services continues to be fueled by a variety of factors including the rapid rise in mental health issues among children and adolescents, increasing prevalence of autism, and a growing population of special needs children due to better diagnosis and mounting cognizance among parents and educators of the benefits of intensive therapy and early intervention. Per a recent national poll, ~90% of administrators describe mental health challenges in schools as moderate to severe and 50% are concerned that districts do not have adequate staff to address student mental health needs.

“Outsourcing providers offer a critical solution as school districts face the daunting task of addressing the youth mental health crisis and growing demand for special education services, a challenge exacerbated by shortages of speech language pathologist and behavioral and mental health clinicians. As such, we expect high quality school-based behavioral health providers will have excellent growth prospects and be highly sought after from both private equity and strategic buyers,” remarked Mark Surowiak, Director at Capstone.

Capstone Partners has deep experience in the special education and behavioral health sectors previously representing EBS Healthcare, SPG, Invo Healthcare, Progressus Therapy, and Conscious Discipline.

The expert investment banking professionals on Capstone Partners’ Healthcare Team work with leading middle market companies operating in the healthcare services market to advise with their strategic decision-making in order to maximize financial outcomes at every stage of the business lifecycle. Our firm has developed a full suite of corporate finance solutions, including M&A advisory, debt advisory, financial advisory, and equity capital financing to help privately owned businesses and private equity firms address any need, ranging from growth and financial or operational advisement to an ultimate exit transaction. To learn more about this transaction, or about the benefits of starting a relationship with our Healthcare Banking Team, contact us here.