Riverside Surveys the Field, Finds HR Solutions December 05, 2011
Employee Engagement Firm Adds to Patient Experience Company’s Offerings
The Riverside Company has already completed an add-on to its recently acquired portfolio company Avatar International (Avatar), purchasing HR Solutions International, Inc. of Chicago. Avatar assists its healthcare customers in improving the patient experience, while HR Solutions is a management consulting firm specializing in employee and physician engagement. Both companies use surveys as a mechanism to measure their customers’ performance in their respective areas of expertise.
HR Solutions serves a wide range of industries, but derives about half its revenue from healthcare customers and has been exclusively endorsed by the American Hospital Association for employee engagement, exit, and physician engagement surveys. HR Solutions also operates in many other industries, including hospitality, manufacturing, retail, communication and financial services, among others – all of which provide a diverse knowledge base of best practices and inter-industry benchmarking. HR Solutions designs surveys and administers them primarily through email or other web-based delivery. Customers access the data through an online reporting tool that provides detailed and customizable results as well as actionable recommendations.
Avatar provides patient experience solutions to its customers, including customized patient satisfaction surveys, supplemented by actionable data reports, benchmarking, and best practices guidance focused on improving the patient experience and health outcomes. The work of companies like Avatar and HR Solutions is increasingly important in competitive marketplaces. The acquisition of HR Solutions greatly expands Avatar’s capabilities while providing an office in Chicago, which is close to many current Avatar customers and offers a solid foothold in the Midwest.
“This allows Avatar to build its employee engagement service offering, a valuable complement to Avatar’s existing patient experience business,” said Riverside Principal Sarah Roth. “We’re very excited because this acquisition will help Avatar develop solutions for customers that reflect its fundamental belief that engaged employees are a necessary component of delivering great patient care. We’re developing that capability with an excellent company in HR Solutions. Their customers, AHA endorsement, database, tools, and talent all make Avatar a stronger and more effective company.”
Avatar plans to continue developing its employee survey business. One particularly exciting opportunity involves delivering to customers a better understanding of the relationship between employee engagement and patient satisfaction. Avatar believes this data can help its customers improve the quality of healthcare delivery.
“We’re delighted to be able to close such an effective add-on acquisition just a couple of months after acquiring the platform,” said Roth. “This is an outstanding strategic and cultural fit for Avatar.”
The HR Solutions add-on is Riverside’s 25th acquisition of 2011.
Working with Roth on the transaction for Riverside were, Karen Pajarillo, Partner; Ben Davis, Senior Associate; and Drew Flanigan, Associate. Regional Director, Origination Jeremy Holland sourced the deal for Riverside.
Jones Day and KPMG advised Riverside on the deal, while Golub Capital provided funding.
The Riverside Company
The Riverside Company is a global private equity firm focused on acquiring growing enterprises valued at up to $200 million (€200 million in Europe). The firm partners with strong management teams and enhances its investments through acquisitions and organic growth. Since its founding in 1988, Riverside has invested in more than 250 transactions with a total enterprise value of more than $5.8 billion/€4.7 billion. The firm’s portfolio in North America, Europe and the Asia-Pacific region includes more than 75 companies with roughly 13,000 employees. Riverside completes acquisitions smoothly thanks to $3.2 billion/€2.4 billion in assets under management, more than 200 professionals in 20 offices, and longstanding relationships with partner lenders.
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