SC-2025-002

Confidential

Third Party Benefits Administrator

United States

Market-leading third-party administrator serving 2,100+ brokers with ACA-compliant MEC/MVP plans and ICHRA solutions. Exceptional 83%+ EBITDA margins driven by lean South America-based operations, scalable technology platform, and specialized focus on cost-effective employer health coverage alternatives.

Annual Revenue

~$6.0M

2024 performance

EBITDA Margin

83%+

Exceptionally lean operation

Broker Network

2,100+

Appointed brokers nationwide

Owner's Expected Valuation

~9× EBITDA

Platform investment opportunity

Business Model & Value Proposition

Proprietary ACA-compliant MEC/MVP plans and Individual Coverage HRA (ICHRA) solutions addressing the $2.8B small group health insurance market. Differentiated white-labeled broker programs with tax-optimized structures, delivering 40-60% cost savings versus traditional group health plans while maintaining compliance and quality coverage.

Distribution & Go-to-Market Strategy

Proven B2B2C distribution model with 2,100+ appointed independent brokers nationwide, supported by centralized sales infrastructure and comprehensive training programs. High broker retention (85%+) and growing average revenue per broker creating predictable, scalable growth with minimal direct sales investment.

Competitive Positioning & Risk Management

Best-in-class 83%+ EBITDA margins achieved through strategic South America-based operations (~50% of workforce) providing 70% cost arbitrage while maintaining U.S. regulatory compliance. Conservative approach avoids high-risk association health plans, ensuring sustainable competitive positioning and regulatory durability in evolving healthcare landscape.

Strategic Investment Opportunity

Compelling platform investment at 9× EBITDA targeting strategic or financial sponsors. Founder collaboration opportunity for minority/majority recapitalization. Established infrastructure supports multiple growth vectors: geographic expansion, complementary TPA acquisitions, adjacent product development, and potential enterprise direct sales channel.

Core Services

  • MEC (Minimum Essential Coverage) Plans
  • ICHRA Solutions
  • White-Labeled Broker Plans
  • MVP (Minimum Value Plans)
  • Tax-Optimized Plan Structuring
  • Scalable Back-Office Operations

Client Verticals

  • Small & Medium Enterprises (2-500 employees)
  • Healthcare & Medical Practices
  • Manufacturing & Distribution
  • Professional Services Firms
  • Technology & Software Companies
  • Retail, Hospitality & Service Industries

Key Business Metrics

Founded

Late 2010s

Client Retention

High Renewal Rates

Revenue Type

Recurring TPA Fees

Ownership Structure

Founder/CEO

100% Founder-led

Open to minority/majority partnerships. Seeking distribution-focused strategic partners.

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