Thematic approach to pipeline where the target:
Preferred investment criteria:
Reputable leadership as an acquirer:
A strong focus on vision & strategy:
- 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.