Wellness has become an increasingly hot topic in private equity — there’s a fundamental shift happening in America related to how people think of their health and longevity. Private equity firms only win if they are on the cutting edge of which industries are unknown, over-weighted or ripe for getting in early before the boom.
What do PE firms look for?
Profit and loss control, scalability and predictability. If you’re looking to bring private equity to your business, you need to be able to show investors that you can provide them with all three of those qualities.
What is the appeal of bringing PE to wellness and longevity?
It’s simple — they’re following the money. The US healthcare industry is the largest industry in the world. The culture has shifted since 2020; Americans are valuing their health more and adjusting their lifestyle routine to promote their health and longevity. Of the trillions of dollars that exist in America’s economy, billions are flowing towards wellness and longevity.
What do you need to do to prepare your wellness business for PE?
Number one, take your data seriously. Build your brand strength and have a fundamental approach to your marketing. Harnessing the power of your data can not only improve your marketing strategies but also help you show PE investors your upward trajectory.
What is the most important metric to be aware of?
Earnings before interest, taxes, depreciation and amortization (EBITDA). Yes, you need revenue to have EBITDA. But you need consistent earnings to have a business.
Our CEO, Trevor Tully, is speaking on this topic at Bio BizBash in Phoenix, AZ on September 7th. Request a ticket to this event by following us and messaging us on Instagram @theboldmd.
If you’re looking for more info on any of these topics, click below to schedule a meeting with us.
