Benicorp Insurance Company is headquartered in Indianapolis, Indiana and provides small group health insurance to small and medium sized businesses. Benicorp had very strong underwriting capability which resulted in favorable loss ratios and the ability to price it policies competitively.
McKee Heritage Holdings Corp. was a company established by a group of private investors with expertise and experience in the financial services sector.
Challenges
The company needed additional capital in order to increase its regulatory reserves, to maintain its credit rating, and fund increased growth.
Several long time shareholders desired an exit strategy for liquidity and wealth diversification.
The company was a leader in smaller, rural and niche markets. Larger group health company acquirers, at that time, were not highly interested in such acquisition targets.
Results
McKee Heritage Holding Corp. was identified as the buyer that had the best strategic fit for the business. They had the financial resources, management, and motivation necessary for a successful transaction.
Legacy’s senior partners negotiated strong economic value to shareholders and worked with company’s counsel to negotiate favorable contract terms.
Legacy’s partners worked closely with the company’s personnel throughout the marketing, negotiation, and closing of the transaction in order to minimize business disruption and increase the probability of a successful close.
