Target Company Overview

Miami Beach Medical Group (MBMG), founded in 1997 and based in Doral, Florida, is a prominent provider of primary care, specialty care, and ancillary services specifically for Medicare Advantage plan members in South Florida. It stands as the second largest independent provider of capitated primary care services in the region, operating a network of 19 medical centers across four counties. MBMG has established contractual agreements with 10 health plans and runs a management services organization (MSO), employing 74 independent physicians who collectively serve over 1,750 Medicare Advantage patients.

Industry Overview in South Florida

The Medicare Advantage sector in the United States is experiencing substantial growth, with national enrollment projected to increase at an approximate rate of 8% annually. This rise is anticipated to reach 37 million members by 2025, largely driven by the expanding U.S. senior population. Florida is a significant player in this market, ranking as the second largest in terms of Medicare Advantage enrollment in the country.

South Florida, in particular, represents a key area within Florida, accounting for about 30% of the total Medicare Advantage enrollees in the state. This regional concentration underscores the importance of healthcare providers who are well-positioned to meet the needs of a growing senior demographic and the rising demand for comprehensive care solutions.

As enrollment in Medicare Advantage plans continues to increase, local providers like MBMG find themselves strategically important, not only in their current service offerings but also in their capacity to capitalize on the evolving landscape of healthcare management and delivery. The competitive nature of the healthcare sector in South Florida further amplifies the necessity for organizations to enhance their operations and maintain high-quality standards.

Rationale Behind the Deal

This acquisition is strategically aligned with Sun Capital’s investment focus on market-leading companies poised for growth in their respective industries. With the growth trajectory of Medicare Advantage enrollment, MBMG is in an advantageous position to expand its services and enhance operational efficiency.

Sun Capital’s intention is to utilize its extensive healthcare expertise to accelerate MBMG’s growth trajectory while maintaining high-quality care standards. The partnership aims to leverage MBMG's existing infrastructure and management capabilities to explore new avenues for expansion and service delivery.

Investor Information

Sun Capital Partners, Inc. is a distinguished private investment firm that specializes in investing in companies with strong market positions. The firm is recognized for its strategic approach to enhancing operational performance and supporting companies through growth phases. Sun Capital's track record encompasses numerous successful investments in the healthcare sector, showcasing its capability to foster improvements in management and delivery systems.

The firm’s leadership has expressed confidence in MBMG's management team and their proven track record, indicating a strong belief in the potential for significant advancements in performance and patient care as part of this new collaboration.

View of Dealert

In the perspective of Dealert, the acquisition of Miami Beach Medical Group by Sun Capital Partners appears to be a robust investment opportunity. With MBMG's established infrastructure and reputation for quality care, the collaboration has the potential to yield substantial growth in a booming market. The firm’s experience in scaling healthcare organizations aligns well with MBMG’s operational needs, making this a strategic match.

Moreover, the anticipated growth in Medicare Advantage enrollment in Florida enhances the investment's attractiveness. By aligning resources and expertise, Sun Capital is likely to enhance MBMG's capabilities, bolstering its service offering to meet a growing demand.

As the healthcare landscape evolves, the partnership is well-positioned to explore new growth opportunities and adapt to changes within the market. Overall, the combination of MBMG’s existing platform and Sun Capital’s strategic guidance presents a potentially lucrative scenario for both entities moving forward.

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