- Principal Technologies is a healthcare technologies investor targeting 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.
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 Technologies Inc. (TSXV:PTEC) intends to tear those barriers down. Based in Vancouver, British Columbia, Principal Technologies focuses on investing in life-saving and life-improving healthcare technologies and innovations. Working through a wholly owned European subsidiary, the company intends to invest in private healthcare technology companies in Europe, and expose them to the North American marketplace where they can benefit from the region's higher valuation of med-tech companies.