Silver Oak Services Partners Recapitalizes Physical Rehabilitation Network

Apr. 02, 2012 -Portfolio Company News

Silver Oak Services Partners announced it has led the recapitalization of Carlsbad, California-based Physical Rehabilitation Network (“PRN”) in partnership with management and co-investors.

PRN is a leading physical therapy clinic (“PT Clinic”) platform in the western U.S. The company owns and operates 70 PT Clinics and provides management services to an additional 29 PT Clinics in California,Colorado, Nevada and Washington. PRN PT Clinics provide a variety of outpatient rehabilitation services, including: physical therapy, occupational therapy, hand therapy and other ancillary services. The Company has an attractive business model, partnering with therapists highly respected in their local markets to develop and manage each clinic. The therapist partners maintain their own branding and relationships with referral sources and also typically own a minority
interest in the clinic, while PRN corporate in turn provides a comprehensive set of centralized management services to the clinics.

Silver Oak partnered with existing management on the transaction. “This transaction is a great outcome for PRN. Our partnership with Silver Oak provides us with a value-added partner and the capital resources necessary to grow our clinic base and better serve our therapist partners,” said PRN CEO Jim Ripp and Founder Tim Varley, both of whom will continue to lead the company and hold an ownership stake.

“We are excited to partner with the management team of PRN and continue to build out the company’s presence in the Western U.S. PRN has a strong
history of growth through de novo development and acquisitions, and we intend to leverage the company’s centralized management services and
development capabilities to capitalize on the significant growth potential in the PT Clinic sector,” said Dan Gill, Managing Partner of
Silver Oak. PRN is actively looking for de novo development opportunities as well as add-on investment opportunities.

Please contact Dan Gill or Wade Glisson of Silver Oak for additional information. Silver Oak invests in business, consumer and healthcare services companies in
the lower middle market, typically with EBITDA of $3 million to $20 million.