Calder Capital has been retained to assist Spectrum Health Ventures with its strategy to invest in healthcare-related companies. Spectrum Health, one of the nation’s top 15 health systems, formed Spectrum Health Ventures seeking to invest up to $100 million in companies commercializing technologies, products and services that improve patient health, increase the patient experience and reduce overall costs of health care. Spectrum will be primarily focused on investing in established, profitable companies with health-related products and services. Spectrum will pay particular attention to companies whose products and services are currently used by Spectrum, or could be used by Spectrum Health in the future.
- Spectrum will pay particular attention to companies whose products and services are currently used by Spectrum,
- or could be used by Spectrum Health in the future.
Target: Companies specializing in health-related products and services, particularly products and areas that Spectrum already currently uses or is expected to use in the near future.
Geography: Investments will be considered nationwide, but there will be greater focus on Midwest-located companies.
Revenue: Up to $20,000,000.
Cash Flow: Ideal cash flow range is $1,000,000 – 4,000,000; however, turnaround investments, zero cash flow companies, or companies needing growth capital infusions will also be considered.
Valuation/Deal Structure: Spectrum will look to ensure valuations are in-line with market and also position the company well for continued growth and success. The ideal structure Spectrum would look to enter into would be minority growth capital investments. However, Spectrum will consider majority positions, 100% buyouts, and other deal structures depending on the company and situation.
Management Situations: Spectrum prefers situations where there is a management team in place who would like to continue leading the company post-transaction.
Profitability: Spectrum is looking for established businesses with proven profitability. However, low profitability or turnaround situations will also be considered on a case-by-case basis.
- The ideal structure Spectrum would look to enter into would be minority growth capital investments.
About the Company
Founded in the late-20th century, Spectrum Health one of the nation’s top 15 health systems, according to Truven Health Analytics in 2015. Based in West Michigan, the Spectrum Health is comprised of 12 hospitals and 183 ambulatory and service sites with more than 3,400 physicians and advanced practice providers.
Spectrum Health Ventures was formed in 2017 to invest up to $100 million in healthcare-related companies. The fund will allow Spectrum to share its vast knowledge base and staff of clinicians and professionals in the industry who can contribute to vetting innovations, judging their potential, and advising companies in which the fund invests.
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