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Investment approach

SalusInvest maintains a set of stringent criteria for selecting portfolio companies. Whilst not all of these criteria need be satisfied in every instance, they form the basis for investment decisions:

  • A portfolio company must have plans to develop products that address a medical technology market around the world and should not be limited to the market in the U.K.
  • We look for a clearly differentiated technology that is world-class. The technology must be protected by patent or by confidential, proprietary software or algorithms.
  • The business model should not only deliver improved patient outcomes when used clinically but also deliver improved productivity to the clinician and reduce cost to both the clinician and if possible the patient.
  • A management team and a board in place where at least one of the senior managers has experience in the industry that is being addressed with the technology. The board should have non executive directors where the Chairman at least has experience of managing a multinational, multi site group of companies and where some of the non executives have experience of leading successful trade exits.
  • We expect most of the investments, if successful, to be ready for an exit within a 5 to 8 year period from the initial investment by SalusInvest. As a consequence we normally seek portfolio companies who are able to break-even in cash and profit terms once they reach a revenue level of ~$5 million p.a and where the funding requirements to attain that level of funding is no more that $7 to $10 million.

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