Lifesprk, LLC

Cherry Tree served as Lifesprk’s exclusive investment banking advisor in its $16.1 million Series A Preferred stock investment led by Virgo Investment Group.

“As we sought strategic and financial partners to help us accelerate growth, we looked favorably on experienced healthcare investors who shared our vision for innovation and wellness as well as having deep expertise in scaling value-based, technology enabled models,” said Joel Theisen, BSN, CEO of Lifesprk, “and Cherry Tree was instrumental in running the entire process. They understand our business, prepared our material and our team for great conversations with top-tier investors, then lead us through to completion. We are very grateful for their partnership.”

Joel Theisen, BSN, CEO of Lifesprk

INDUSTRY:
Healthcare Services, Technology Enabled Services

DESCRIPTION:
Provider of Whole Person Services for Seniors

LOCATION:
St. Louis Park, Minnesota

TRANSACTION TYPE:
Growth Capital Financing

The Opportunity: Accelerating Growth

Lifesprk, LLC (“Lifesprk”), headquartered in St. Louis Park, MN, is a leader in whole person services for seniors. The company provides a majority of its services in the Twin Cities metropolitan area as well as the Salt Lake City region through its Homespire joint venture with Utah-based Intermountain Health Care. In 2019, Lifesprk also partnered with North Memorial Health and UCare, a large independent, non-profit health plan company, to provide services to the Medicare Advantage population under a value-based program. Although the Company had stable liquidity to provide sufficient resources for its organic growth, it required additional resources for the many expansion opportunities, and Cherry Tree was hired to raise capital in support of their growth plans.

In March 2020, Lifesprk secured a $16.1 million Series A Preferred stock investment led by Virgo Investment Group (“Virgo”) to fund organic growth, strategic partnerships, and implementation of a propriety technology platform that enables its Life Experience Alternative Delivery System (LEADS.)

Cherry Tree’s Role:

Cherry Tree served as Lifesprk’s exclusive investment banking advisor. It was important to Lifesprk shareholders that their capital partner strengthen their commitment to clients, employees and partnerships as the Company capitalizes on the rapidly growing market for value-based senior services. Cherry Tree played a prominent role from the pre-process business planning and strategy development phase and led management through the process of discussions with potential capital partners, including Virgo, ultimately culminating in due diligence, negotiating terms and facilitating the closing of the transaction.

Outcome

Lifesprk will invest in technological innovations to operationalize LEADS by using its proprietary Electronic Life Record (ELR) to deliver complete information to clients, families, and caregivers through proprietary and third-party applications. This allows Lifesprk to address two primary challenges in senior healthcare services: the lack of tracking SDoH and interoperability.

Lifesprk’s whole person solutions are perfectly timed for expansion and disruption in the senior care market. The new era of population health-related market dynamics that are shifting compensation from reactionary and transactional models towards value-based healthcare systems.

About Lifesprk

Lifesprk, founded in 2004, is a leading provider of proven whole person primary care, in-home health, and SDoH services for seniors, utilizing a unique, proprietary, value-based population health solution that delivers the “triple aim” of improved client experience, improved outcomes, and lower total cost of care. Based in St. Louis Park, Minnesota, Lifesprk’s Life Experience Alternative Delivery System (LEADS) is a proprietary, technology-enabled delivery system focused on the whole person that improves client experience and quality outcomes, lowering the total cost of care and building life-long affinity. The first complete payor-agnostic community-based delivery system, LEADS can be applied to a full continuum of care settings and reimbursement models, putting Lifesprk at the forefront of value-based care initiatives. With an award-winning culture committed to sparking lives, Lifesprk has a proven track record of consistent growth with solid financials and outcomes as well as experience scaling and integrating with a wide range of partners.

About Virgo

Virgo was founded in 2009 with the mission to build meaningful and innovative businesses that are leaders in their addressable markets. Virgo partners with Founder-led or Family-owned businesses, and targets companies undergoing industry or company-specific change. Virgo drives value-add initiatives post-investment with a focus on human capital transformation, business process enhancement and technology implementation. Virgo is an idea that there is a more creative, a more aligned, and a more human way to invest in and to build businesses together. The Firm has raised over $1.8 billion and completed 60 investments to date.

About Cherry Tree & Associates

Cherry Tree & Associates is a private investment banking firm headquartered in Minneapolis, Minnesota. Founded in 1980, it specializes in M&A transactions for both buyers and sellers of middle market companies. Additionally, it conducts private placements for attractive, entrepreneurially managed growth companies, provides strategic advisory services to CEOs and boards of directors, and prepares fairness opinions and other valuation services.