Provides next generation worksite health and wellness services
Repucare Onsite is not currently fundraising.
Preferred equity investing explained
How it works: Investors receive a share of the ownership of the business by investing directly or through a pooled entity.
Use this simple calculator to determine how much ownership of the company you receive.
How much equity will I receive?
Two key terms to understand in preferred equity offerings
Equity represents ownership in a business. Since investors are providing capital to the business in order for the business to operate, they receive preferential treatment as it relates to certain activities of the business. There are two key terms to focus on when considering a preferred equity offering:
Valuation: Valuation represents the agreed upon price at which the business is being valued in the fundraise. There is not set method for determining what the valuation of a business is, especially for early stage companies. It is simply a number to be negotiated between the business and potential investors. Investors will want a lower valuation, so that they receive a greater percentage ownership in the business. Businesses will want a higher valuation, so that they give up less ownership. Typically with early stage businesses, you can expected to give up anywhere between 20% and 50% of your company in a preferred equity fundraise. Typical valuations for early stage businesses range from in the hundreds of thousands to $5 million.
Liquidation preference: A liquidation preference represents the order in which proceeds of the business are distributed in the event that the business is sold. Often, preferred equity will come with a 1x liquidation preference, meaning investors receive 1 times their investment back before any other funds are distributed to any other owners of the business (i.e. the common equity holders). In this scenario, investors would receive their money back, and then any additional proceeds would be distributed ratably (based on the percentage of the business each investor owns).
So if the company is sold for $10 million, and preferred equity investors previously invested $1 million, which represented 25% ownership of the company, preferred equity investors would receive the first $1 million + 25% of the remaining $9 million, or a total of $3.25 million in the sale. So while they owned just 25% of the company, they received a total of 32.5% of the proceeds from the sale of the company.
Founded in 2011, RepuCare OnSite is a next generation worksite health and wellness provider with an 18-year legacy core competency in healthcare talent acquisition. We deliver “high touch” data driven wellness and worksite health center solutions to employers target intervention and foster higher engagement and behavior change. Our solutions result in better health outcomes and higher healthcare cost savings and ROI for employers when compared to traditional wellness and onsite clinic models.
Billie Dragoo (CEO) and Gerry Erb (COO) bring significant healthcare industry experience, expertise, and a track record of building enterprises for success, size and value. They started RepuCare to combat rising employer healthcare costs and reduce the prevalence of chronic conditions that account for 75% of healthcare costs.
RepuCare is targeted to small and mid-sized non-profit and for-profit employers (100-5,000 employees) where the adoption of corporate health and wellness programs is low. Since our founding, we have launched a model clinic with city of Kokomo and have opened a second clinic with Celadon, one of North America’s largest transportation and logistics companies. We have also recently formed a partnership with IU Health to provide an integrated health and wellness center for 15,000 state of Indiana employees.
We are currently in the final stages of acquiring a regional wellness provider that will result in a combined company with $5.8M revenue in 2014 annual forecasted revenue, 55 clients and 60 employees. This acquisition will position us to scale quicker, access a larger market, up-sell high touch wellness and health centers to a larger client base and shorten the time and cost to wellness and population health know-how, technology, talent and outcomes.
The funding from this fundraise will be used to complete the acquisition of the wellness provider and for near-term growth capital.
Billie Dragoo is an entrepreneurial healthcare executive with 25 years experience in the healthcare services industry. Billie founded RepuCare in 1995 to provide medical staffing services to hospitals, clinics, schools and nursing homes in central Indiana. In 1999, she diversified into the employer healthcare market by introducing on-site occupational health services for prevention and treatment of worksite injuries and illnesses. In 2004, she added on-site healthcare services with the opening of the company’s first clinic at the new Indianapolis Airport construction site to serve the medical needs for the 3,000 construction workers on the project. In 2006, Billie expanded the company’s services to staffing for State healthcare programs including Medicaid and the prison system.Billie has been the recipient of many business awards including 2007 Starkey Entrepreneurial Women’s Award, 2008 Ernst & Young Entrepreneur of the Year Finalist Midwest, 2008 Torchbearer Award for Entrepreneurial Advocacy, 2009 IBJ Women of Influence Award and 2014 Junior Achievement Business Hall of Fame Award.Billie is a leader for women’s advocacy and leadership development. Billie currently serves as Chairperson and President of the National Board of Directors of the National Association of Women Business Owners (NAWBO). She is Past President and emeritus board advisor of the Indianapolis Chapter of NAWBO where she was the architect of its record growth and mentorship of many women business owners. She is Chairman and Founder of the Indiana Women Business Owner’s Political Action Committee (IWBOPAC).
Gerry Erb is an entrepreneurial and corporate executive with 33 years experience in the healthcare industry. He has served in executive leadership at venture backed companies that were subsequently acquired by General Electric and Johnson & Johnson. He was the past CEO of Biosound, a pioneer in cardiovascular ultrasound imaging technology. He led the management buyout of the firm and later sale to Esaote, a major European imaging equipment manufacturer. Gerry established a successful track record of starting up and leading early stage companies, spearheading corporate growth through innovation and business development, recruiting strong management teams, developing distribution channels, leading product development organizations, developing international markets, and managing reorganizations and turnarounds. Hi healthcare industry experience spans IT (EMR and PACS), imaging equipment, diagnostic and therapeutic devices, provider services and staffing. Gerry holds an MBA from Stanford University and a BS Engineering from Cornell University.
Brian Modiano is a seasoned CFO with over 30 years of diverse financial experience including 15 years as a CFO for Indiana Health Information Exchange(IHIE), Bluelock, ChaCha, Baker Hill Corporation and Bank One Mortgage (now JP Morgan Chase Mortgage). Brian was recognized in December 2010 by the Indiana Business Journal as one of three finalists for CFO of Year - Private Companies under $100 million. Brian has worked for startups, fast growing entrepreneurial companies and Fortune 100 companies. Brian is an angel investor and the founder of MoMentum Ventures a seed venture fund investing in early stage businesses and alternative investments.
Update on Repucare Bank Loan
May 8, 2014
We are moving towards a May 30th close date for the acquisition and the equity funding. We received some good news yesterday. Repucare OnSite was approved by the National Bank Of Indianapolis for a 5 year term loan for $200,000 a line of credit for $200,000. This gives us an additional $100,000 "headroom" over the current combined debt obligations of the Seller and Repucare OnSite.
Business status: No current fundraise
You can express interest to notify the business of your interest in a future fundraise.