Investment Strategy

Prometheus is seeking to make a controlling investment in a profitable, private company with annual revenues of $5 million to $50 million. The target company will have stable recurring revenue and cash flow, straightforward operations, and a meaningful growth potential.

Healthcare will be the primary but not exclusive area of the search. Prometheus will evaluate all opportunities that meet the investment criteria.

Prometheus will prioritize businesses that help improve the quality, coordination, and management of healthcare and reduce the cost of healthcare delivery. Prometheus believes that there are significant investment opportunities in the healthcare technology, business services, and the outpatient care sectors. Our team will also investigate opportunities in the new dynamic space of utilizing wireless connectivity, cloud computing, and data analytics often collectively termed the connected and digital health.

Prometheus recognizes that certain opportunities may present industry specific risks, such as risks associated with reimbursement and regulatory environment, high technology risks, and uncertainty due to implementation of government legislation initiatives. Prometheus management will navigate away from investments that present such risks or have unproven technology or business models.

OUR PROCESS


Financial:
  • Revenues of $5-$50 million
  • Revenue growth > 5%
  • Consistent margins and profitability
  • EBITDA > $1 million
  • EBITDA margins > 10%
  • Limited Capital Expenditures
Investment Areas:
  • Healthcare Business Services
  • Business Intelligence and Analytics
  • Healthcare Information Technology
  • Decision Support and Predictive Analytics
  • Outpatient Testing and Monitoring
  • Disruptive Outpatient Care Delivery
  • Home Based Healthcare Services
  • Education and Training Services
  • Process Management and Logistics
  • Mobile and Digital Health
  • Telehealth
Company:
  • Privately owned
  • Operating unit of a larger company
  • Strong management team
  • Strong market position
  • History of steady growth and profitability
  • Low threat of technical obsolescence
  • Stable recurring cash flows
  • Commercial infrastructure
  • Strong intellectual property
  • Brand recognition
  • Strong product and research and development pipeline
 
Situation:
  • Owner seeking to transition out of management
  • Owner seeking a liquidity event
  • Company looking for additional capital to achieve long-term growth
  • Divestiture of non-core business
  • Non-management shareholders looking to divest their ownership
Industry:
  • Recurring revenues
  • Low seasonality
  • Low business cycle exposure
  • Secular growth
  • Limited technology and regulatory risks
  • Proven business model
Value Creation:
  • Transformational Growth
  • Management Team Support and Development
  • Operational Excellence
  • Financial Expertise
  • Industry Network
 
Copyright © 2013 Prometheus Health Partners, LLC - All Rights Reserved