About Vector Group Fund 1
Our Approach
At Vector Group Holdings, we seek true partnerships and mutual alignment of interests. We respect your entrepreneurial dedication and understand that your business is also your legacy. We are very selective in our approach and seek exceptional partnerships to accelerate growth and create value.
With our extensive experience in deal making, strategic, operational, and industry specific knowledge, we aim to obtain exceptional results for our investors in a healthcare services company.
Investment Thesis
The healthcare services industry faces significant industry-specific challenges, as well as meaningful demographic changes. Our operational focus will be on healthcare services companies, harnessing technological advancements and increasing sophisticated offerings to grow a company. We will initially be tageting revenue cycle management, healthcare SaaS, and home health services copanies. We plan to expand revenue streams and build efficiencies to overhead, with a guiding metric of expanding upon margins. Further, we will explore acquiring additional "bolt-on" companies to inorganically grow.
Investment Profile
Below are high-level criteria we consider in guiding our investment decisions. We are open to opportunistic investments that do not necessarily fit the criteria in certain scenarios.
Structure
Control equity investment
Seller to roll equity into new entity
Company Profile
Healthcare services companies
Located in the United States
Technology agnostic
Workforce is remote and/or offshore ready
Low upfront capital expenditures and working capital requirements
Management
Entrepreneur-run or family-owned business
Owner is retiring, absentee, and/or seeking liquidity
Dynamic middle management team in place
Management may retain roles after acquisition
Financial Profile
$2-7M in EBITDA, $5-50M in revenue
Add-on acqusition: +$250K in EBITDA
+10% EBITDA margin
+5% annual growth rate
No distressed / turn-around acquisitions