Medical Dictation Services, Inc.

The Company

Founded in 1980, Medical Dictation Services, Inc. (MDI) provides medical records transcription services to hospitals and physician groups nationally with a concentration in the Midatlantic region.  MDI utilizes experienced transcriptionists and a powerful, Web-based technology solution, resulting in efficient and accurate medical record-keeping capabilities.  MDI is headquartered in Gaithersburg, Maryland.

The Situation

MDI retained KPMG Corporate Finance LLC as its financial adviser for the sale of the company. The shareholders were seeking a strategic partner that could enhance the services provided to its premier customer base and provide further opportunities for growth.  Further, the shareholders were seeking a transaction that reflected the value of MDI’s position in the market. The president of MDI identified Transcend Services, Inc. (Transcend), the third largest provider of medical transcription services to the U.S. healthcare market, as an ideal strategic partner and acquirer. In lieu of conducting a broad, competitive process, the Company desired to evaluate a potential transaction with Transcend.

The transaction

In its role as financial adviser, KPMG Corporate Finance LLC prepared summary information on MDI; solicited interest from Transcend; advised on the valuation, structure, and other key deal terms; coordinated management meetings and due diligence, and assisted in negotiating the final terms and conditions.  Despite challenging overall economic conditions in 2009, KPMG Corporate Finance LLC negotiated a deal structure and value with the preferred buyer. This led to a successful deal closing in under 90 days from the initial meeting. The acquisition was meant to enhance Transcend’s position in the market and to further its national footprint with a premier acquisition in the Midatlantic region.