Private equity firm Renovus acquires KSM Consulting

10 April 2019

Management and technology advisory firm KSM Consulting has been acquired by Renovus Capital Partners.

Indianapolis-based KSM Consulting (KSMC) has seen massive growth over the past five years, increasing in size by 500% and achieving 50% growth in 2018 alone. The firm has seen consistently growing demand for its services in the areas of IT consulting and support, cybersecurity, data analytics, project management, and business strategy.

Founded in 2008, KSMC has two locations in Indianapolis, and has supported more than 300 public and private sector clients throughout the US, including the State of Indiana and Flaherty & Collins Properties. The consulting firm is an offshoot of Indianapolis accounting firm Katz, Sapper & Miller.

The firm’s stellar growth attracted the attention of private equity firm Renovus Capital Partners, which has now acquired a majority interest in KSMC. Katz, Sapper & Miller will retain a minority ownership stake in KSMC and a seat on the board of directors.

Private equity firm Renovus acquires KSM Consulting

Based outside of Philadelphia, Renovus invests in education, training, human capital, and technology services firms. The private equity firm has acquired 22 portfolio companies since 2010, and manages more than $500 million of committed capital.

“We feel very fortunate to have found an Indianapolis company with such a history of success and great potential for growth,” Atif Gilani, Renovus founding partner, said. “We look forward to investing in KSMC’s leadership team and employees to grow the Company’s influence in Indiana and beyond.”

As part of the deal, KSMC president Mark Caswell will take on the role chief executive officer. “I speak on behalf of the entire KSMC team when I say that we owe much of our success over the last 10 years to our incredible clients and partners,” Caswell said. “We are excited to expand our Indianapolis headquarters and invest in the Indianapolis community in big ways as we begin a new chapter.”

Private equity acquisitions of high-performance consultancies are usually followed up with capital infusions to scale up operations – through hiring or M&A – to achieve greater returns. In KSMC’s case, the firm will look to immediately hire up to 30 data analysts, consultants, and project managers at its Indianapolis headquarters.

“KSMC’s growth over the last 10 years is something we’re proud to be a part of,” David Resnick, managing partner of Katz, Sapper & Miller, said. “The benefits and growth that this opportunity affords will allow KSM and KSMC to continue pursuing success together.”


Wellness Workdays acquires health coach Occupational Medical Consulting

22 April 2019

Corporate wellness program advisor Wellness Workdays has acquired health coaching firm Occupational Medical Consulting.

Healthcare approaches have long been premised on after-the-fact treatment, which is both more costly and often less effective than preventative measures. If doctors and public health specialists could get everyone to exercise daily, eat leafy greens, cut down sugar intake, and relax, then national healthcare costs would be a great deal lower. Buy-in is the tough part, however.

From a corporate standpoint, wellness programs are becoming more popular for a number of reasons. For one thing, either health-centric or financial wellness programs can cut down on stress, which in turn can cut down on productivity loss. Health-based wellness programs aim to decrease sick days and illness absences, while lowering health insurance costs and premiums.

According to a Harvard meta-review of research in the field, every $1.00 spent on worksite wellness programs has an expected ROI of $3.27, and when absenteeism is factored in, the return increases to $6.00. In the end, a healthy workforce is a more effective and efficient one – but once again, how do you get buy-in?Wellness Workdays acquires health coach Occupational Medical ConsultingMaine-based OMC’s health wellness program method is physician-driven, and rooted in behavioral science that gets strong results. Behavioral science is a popular field that seeks to understand and exploit the peculiar biases and irrationalities of humans in order to drive favorable policy results. A fun example of behavioral nudging is Amsterdam Schiphol Airport’s strategy of painting houseflies inside men’s urinals in order to “improve aim.”

In the case of health coaching, the process might involve playing on people’s loss aversion – setting exercise goals, for example, where you are forced to lose something valuable if you fail to follow through.

The consulting firm reports that its standardized coaching process and proprietary software drive wellness program participation rates well above national norms – reaching 80-95% participation rates on average.  As a result of OMC’s advisory work, clients have decreased behavioral health risks and costs risks – reducing and preventing excess medical spending and insurance premium increases in the process.

OMC has now been acquired by Massachusetts-based wellness consulting firm Wellness Workdays. The consultancy delivers corporate wellness services and nutritional programs that aim to promote employee health and morale, increase productivity, and lower health care costs. The firm’s four-step process covers assessment, strategy, implementation, and evaluation.

Wellness Workdays has additional offices in New York, Florida, and Texas, and has worked with notable clients such as MIT, Brown University, Putnam Investments, and New Balance.

As part of the acquisition OMC will now operate as a subsidiary of Wellness Workdays, and will be rebranded as OMC Wellness.

"OMC provides an exciting opportunity for Wellness Workdays to further enhance and expand its wellness offerings," said Debra Wein, founder and CEO of Wellness Workdays and CEO of OMC. "The organization shares our common vision related to a high-touch, outcomes-driven approach to wellness, as well as a passion and commitment to promote employee health and well-being.

“The acquisition brings our proprietary approach to wellness together with OMC's highly trained health coaches to drive better health outcomes and ultimately, healthier employees," she added.