Capstone Advises Pinnacle Family Services on Its Sale to Health Connect America

Capstone Partners advised Pinnacle Family Services (Pinnacle or The Company) on its acquisition by Health Connect America (HCA). Terms of the deal were not disclosed.

Pinnacle Family Services is a leading provider of outpatient behavioral health and therapeutic foster care services to at-risk youth in the Southeast. The Company utilizes evidenced-based clinical models to provide an array of behavioral health services to high-acuity children with significant medical, developmental, and/or behavioral issues as well as intensive support and training for foster parents to drive better outcomes.

Pinnacle’s clinical models benefit at-risk youth and their families with a full suite of home- and community-based programs that reduce costs associated with unnecessary institutional placements, resulting in significant cost savings to payors. The Company is 3-year CARF-accredited and is well positioned to capitalize on the trend among payors to favor community-focused providers utilizing evidence-based models.

Health Connect America, a portfolio company of Palladium Equity Partners, is a multi-state behavioral health platform that treats a comprehensive mix of issues— including conduct disorder, substance abuse, autism disorders, and emotional disturbance—facing children, families, and adults. HCA is honored to be a part of the communities it serves and walks alongside its clients as they embark on a journey to self-improvement and more fulfilling lives.

Marc Cabrera, Founding Board member, Pinnacle Family Services, said

"I was impressed with Capstone’s attention to detail throughout the transaction process. They clearly knew the industry, sector, and buyer landscapes, and they were fantastic at driving the deal process through closing by remaining hyper-focused until the very end."

Eric Williams, Managing Director on Capstone Partners’ Philadelphia-based Healthcare deal team, commented 

“The acquisition of Pinnacle further establishes HCA as a premier provider of behavioral and mental health services for at-risk youth. With a highly tenured and experienced clinical staff combined with evidence-based/informed models and a track record of proven outcomes, the acquisition will serve to expand HCA’s therapeutic foster care programs and extend HCA’s services into North Carolina and Florida, with a license to expand into South Carolina. With the completion of this transaction, as well as two others to end 2021, HCA will serve more than 18,000 children and their families in seven states (Tennessee, Georgia, North Carolina, Virginia, Florida, Mississippi, and Alabama).”

Scott Martin, CEO of Pinnacle Family Services, noted 

“We are excited to join the HCA family of companies. HCA is uniquely positioned to support and accelerate the next phase of Pinnacle’s growth while maintaining the evidence-based and patient-first mission of the Company. We look forward to working with the HCA team to further expand our services lines and extend our reach to servicing at-risk youth and their families.” 

Mark Surowiak, Director at Capstone Partners, remarked 

“Demand for Pinnacle’s services is expected to continue to grow at a record pace due to the social isolation, lack of routine, increase in drug use and alcoholism, family stress, and economic instability exacerbated by the pandemic. As these pressures mount, many families are reaching the ‘Coronavirus breaking point’ leading to a tsunami of trauma and unprecedented need for therapeutic foster care and behavioral health services for at-risk youth.”