Thematic approach to pipeline where the target:

• Expands the breadth and market reach of the portfolio.
• Improves the alignment of the portfolio’s mission & vision.
• Increases serviceability to the portfolio/healthcare community at large.
• This approach precisely defines the needs of the portfolio thereby enabling us to narrow candidates quickly and select the most complementary option.

 
Preferred investment criteria:

• Any company/industry were our board members have the strongest experience with.
• B2B over B2C.
• EBITDA of $5 MM+, but $10 MM+ is preferred.
• Given the looming recession staying away from discretionary, consumer spending companies like E-commerce/D2C is better.
• History and stability of company – The longer the history and longer they’ve shown consistent earnings the better.
• Large increases in EBITDA look good but scare investors, so gradual growth is better.
• Situations where the seller is willing to roll at least 20% equity is ideal.
• The operating history and experience in the space will play a big roll to investors/lenders.

 
Reputable leadership as an acquirer:

• Often confidentially approached by targets even before they publicly pursue an exit.
• Selecting targets that enhance our portfolio mix and then augment their success.
• Shorter search cycles allowing reduced expenses of a broker and the complexity of the deal process.

 
A strong focus on vision & strategy:

• Our diligence process goes beyond confirming assets, capabilities, and talent inventory.
• The due diligence process reflects our precision in scoping out targets.
• We bolster financial due diligence with strategic due diligence by testing the conceptual rationale for each deal.
• We identify cross-functional strengths or deficiencies quickly and provide solutions.

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