Principal Technologies

Overview

The healthcare sector has experienced considerable disruption in recent years, from emerging telehealth innovations to new tools for treatment and diagnosis. Each new technology has the potential to change — or even save — countless lives. Yet distributing these technologies to the global market is often far easier said than done, thanks to regulatory challenges and a lack of investment capital.

Principal increases shareholder value by steadily growing the company’s financial performance, and paying off debt with improved cash flows and new equity when capital markets are advantageous.

This process is repeated as new acquisition targets come into play.

Principal's risk management strategy revolves around its acquisition targets. It exclusively pursues companies with a proven competitive advantage; stable cash flow; disruptive technology portfolio with IP capable of significantly improving patient outcomes or quality of life; significant growth potential; and a qualified management team with a strong vested interest in success.

The company leverages exclusive access to key opinion leaders and medical advisory boards and has a highly experienced leadership team.

Notable individuals in its management roster include Jerry Trent, a highly accomplished international investment banker and portfolio manager; Prince Alfred of Liechtenstein, a senior member of the Liechtenstein family; Dr. Gerald Rainer, former CEO of Switzerland’s largest and most prestigious asset management company; and Dr. Ivo Ivanovski, former European IT Minister and currently CEO of Telekom Austria Group’s Tower Co.

Principal's directors, advisors and major shareholders all maintain significant connections throughout Europe's healthcare technology space, ensuring ongoing introductions to potential investments. The company also owns a clinical research organization which maintains a database of emerging technologies, allowing it to assess prospective acquisitions on an ongoing basis.

Company Highlights

• Principal Technologies invests in leading and proven European healthcare technologies.
• Principal drives value in its investments by purchasing them at a discount in the EU and exposing them to the North American market, which offers significantly higher valuations for healthcare technology companies.
• The company is managed, directed and advised by a group of incredibly experienced entrepreneurs and investors, all of whom maintain close industry connections in the EU.
• When acquiring a new target, Principal's first step is to ensure an equity control position. It will typically finance the acquisition through a combination of debt and equity, accessing major EU funds when financing leveraged buyouts.
• Principal has implemented multiple checks, balances and strategies to reduce and manage risk, including:
  • Maintaining profit-oriented compensation plans to incentivize performance.
  • Maintaining strict capital allocation at the corporate level.
  • Ensuring a margin of safety compared to intrinsic value in negotiating its acquisition prices.
• Principal exclusively seeks managers and advisors who will allow it to broaden its competitive advantage, expand its operations and support international expansion.