EEF executes a value-added investment formula in building or acquiring healthcare companies in the lower-middle market. We aggressively pursue organic growth opportunities as well as add-on acquisitions to build entrepreneurial companies into market-leading healthcare enterprises. EEF frequently represents the first round of institutional equity and each investment follows a similar life-cycle and approach to value creation.
Phase IFoundation Building
The initial phase is focused on preparing the platform company for aggressive growth. We leverage our deep industry relationships to identify and retain seasoned executives to lead or augment the existing team. In partnership with our management teams, we then establish a detailed strategic plan, institute best-in-class processes, and invest in strong management information systems.
Phase II Breakout
The second phase centers around driving growth and building critical mass by executing on the strategic plan. This typically occurs through a transformational event or series of events, which may include consummating material acquisitions, securing major contracts or customers, or launching new business lines.
Phase IIIValue Acceleration
With all of the building blocks in place, Phase III focuses on driving accelerated value creation through aggressive organic and acquisition growth and operational excellence. The resultant growth and profitability sought in this phase is intended to position the company to secure maximum value upon exit.
While we are proactive in building our portfolio companies, we recognize that the process requires prudence and patience to maximize value. We conservatively use financial leverage in capitalizing portfolio companies and generally anticipate an average holding period of five years.