Case Study | Implementing Sophisticated Data Analytics to Drive Efficiency & Improved Decision Making Across Portfolio

When PE firms purchase a new portfolio company, there are specific reasons for doing so, leading to a specific set of metrics in mind that the firm wants to report on and monitor, such as customer acquisition cost, profit margins, and customer churn. The PE firm’s operations team focuses on optimizing and improving these key metrics by making changes as needed in the company’s operations, marketing, finance, and other functions. Real-time reporting on the key metrics allows an operating partner and key leaders within the business to proactively see situations coming that may require an adjustment.

Detailed reporting on each company within a portfolio, which each have different reporting systems, is a time-consuming task that inhibits the ability to look at metrics across the board in real-time as needed. In order to seek a solution to this problem, a PE firm came to us.

Challenge:

A PE firm operating partner came to us challenged by the lack of integrated systems his portfolio companies had for reporting on key metrics. Each company had different reporting measures for each of its different KPIs and digging into these metrics across each company in the portfolio was inefficient, inhibiting quick decision making, and consuming valuable time.

In order to win back time and monitor his portfolio companies with ease, he came to us in need of a third party that could ultimately create one dashboard that would report on all of the same metrics for each company across the portfolio. Immediately, they were looking for a group that could start by doing this for one portfolio company as a pilot, in order to see if it would be useful if scaled across the entire portfolio.

Solution:

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade data analytics needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of data analytics resources that uniquely meet the private equity standard. We interviewed the PE firm to understand their specific key criteria and then connected them to a select pre-vetted data analytics group from our invitation-only Intelligent Marketplace that had the capabilities that fit their exacting needs.

Result:

The selected data analytics group got to work on providing the PE firm with the needed dashboards by first implementing ETL (Extract, Transform, Load) software that could tie all of the pilot portfolio company’s systems into a single source of truth. Once this initial step was done, they were able to begin developing dashboards through a data visualization tool. By first combining all of the systems into a single source of truth, the dashboards were created in a way that would allow them to update in real-time, allowing the PE firm to access key data points for the portfolio company at the click of a button.

This was such a success with the first portfolio company that they were able to implement the ETL software across the portfolio, bringing each company’s data to the same point of maturity and combining it into a single source of truth. This allowed dashboards to not only be created for each separate company, but also allowed for dashboards to be created that connected all of the portfolio companies’ data together in order to analyze portfolio-wide trends. This resulted in time being saved at both the portco and PE level, as well as resulted in significant business improvements being made throughout the portfolio due to trends that the dashboards highlighted.

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How we did it: Critical need for interim controller to successfully support portco in sale process

Ready to sell one of their portfolio companies, a PE fund came to us urgently needing an interim controller that could help support their portco throughout the sale process. Knowing that there would be an influx of requests during the sale process, they were looking for an independent prep-for-sale resource that could help manage these requests as well as the book closing. We scoped their specific need to learn that their specific criteria were that the individual had gone through a PE sales process before, had healthcare technology industry experience, and was available for the next 3 to 6 months until the sale was closed.

Leveraging our technology, data, and human ingenuity to quickly sift through our deep pools of independent interim controllers that uniquely meet the private equity standard, we connected the client with an exact-fit, pre-vetted interim controller from our invitation-only Intelligent Network within 48 hours. The PE fund engaged with the consultant and was able to confidently begin the sale prep process while also providing the portco with the support they needed to prepare all the items needed for a successful sale.

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If we can provide you with a PE-grade, pre-vetted, exact-fit prep-for sale resource, or any other third-party provider, please contact us. Interested in learning about more interim financial resources we provide? Check out our interim CFO hub.

How we did it: Critical ops performance & improvement consultant to increase warehouse efficiency

A PE fund managing partner came to us with a critical need for an operational performance and improvement consultant that could evaluate and redesign the existing layout in one of their manufacturing portcos’ warehouses. Since acquiring the portco, the PE fund had discovered that there were foregone profits due to the lack of logistical reason that had gone into organizing the warehouse. They immediately needed a lean six sigma type consultant to come in and optimize the layout, process, and flow of the warehouse in order to increase operational efficiencies. We quickly worked to understand the key criteria of their need and then leveraged our data and human ingenuity to match them with two select, exact-fit, pre-vetted healthcare services senior advisors from our invitation-only Intelligent Network. The client selected their ideal choice and the PE fund was able to confidently engage the individual to drive operational performance and improvement by increasing warehouse efficiency.

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We have a deep bench of ops performance and improvement consultants with a wide array of industry experience and skillsets. We would be happy to quickly connect you with the exact-fit ops performance and improvement consultant or any other service provider you need. Contact us here and our team will begin helping you within 24 hours.

How we did it: Immediate senior advisor with niche pharmacy expertise

A PE fund came to us with a critical need for a senior advisor for their healthcare services pharmacy company. Having recently acquired the company and already struggling with direct specialty contracts, they urgently needed someone to help on the payor side. They were looking for a local resource with expertise in pharmacy contracting that could guide them through the necessary certification and contracting process within 2 to 4 weeks. We quickly worked to understand the key criteria of their need and then leveraged our data and human ingenuity to match them with two select pre-vetted healthcare services senior advisors from our invitation-only Intelligent Network. The client selected their ideal choice and the PE fund was able to confidently drive an excellent outcome without wasting time or cost and the portfolio company was able to quickly gain the help they needed in order to get their specialty contracts in place

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We have a deep bench of senior advisors with a wide array of industry experience and skillsets. We would be happy to quickly connect you with the exact-fit senior advisor or any other service provider you need. Contact us here and our team will begin helping you within 24 hours.

How we did it: Critical VoC Provider

An investment principal at a PE fund came to us with a critical need for Voice of Customer research on a target they had an LOI on in the staffing and recruiting industry. Expecting to get full exclusivity on the target in the next two weeks, they were urgently seeking someone who would quickly be able to perform primary and secondary research on the staffing industry in order to gauge its scope, size, and key players. They were specifically looking for a firm that could go to staffing firms and potential new clients to gather the research, and then synthesize it into usable insights. We quickly worked to understand the key criteria of their need and then leveraged our data and human ingenuity to match them with two select pre-vetted VoC providers. The client selected their ideal choice and were able to gain the customer insights they needed without wasting time or cost.

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Have a VoC, other diligence, or even value creation need we can help with? Contact us here and our team will begin helping you within 24 hours.

How we did it: Immediate strategy session facilitator

A PE fund principal came to us with an immediate need for a strategy session facilitator for their software portfolio company. Having recently acquired the business, the fund wanted to quickly get the portco into strategy sessions so that they could start defining long-term goals. Needing structure for these sessions, they were looking for a facilitator that was a former executive or management consultant and had software industry experience. They immediately needed someone to remotely lead the session and help the portco form and prioritize goals. We promptly worked to understand the nuances of their need and then leveraged our data and human ingenuity to match them with two select strategy session facilitators. The client selected their ideal choice and was so pleased that they have continued to use this resource across their entire portfolio.

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Have a strategy need we can help with? Contact us here.

How we did it: Immediate CDD advisor with software experience to assess potential target for PE VP

A PE fund vice president came to us with a critical need for a commercial due diligence provider that could complete a proactive market study for an asset that they expected to come to market in the next month. With their go-to providers at capacity, no access to the company’s information, and a desire to understand the major players in the IT management software market before the target went to market, the fund was in critical need of an available provider that could perform a full market study in the next week. We promptly worked to understand the client’s exact market study needs and were then able to introduce them to two exact-fit commercial due diligence providers within 24 hours. The client selected their ideal choice that had specific experience in proactively assessing industry attractiveness and was able to quickly gain the market knowledge they needed to confidently assess whether or not the potential target was something they wanted to continue pursuing.

Do you have a similar need or any other specific need we can help you with? Contact us here and we will be happy to help you.

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How we did it: Pricing strategy expert needed to drive demand for consumer products portco

A PE firm came to us with a critical need for a pricing strategy expert to maximize revenue at one of their consumer products portfolio companies. Since competing against big-box retailers, the portco realized their need to set pricing that clearly conveyed the value of their offerings to their price-conscious and value-driven consumers. We quickly worked to understand the client’s nuanced needs, leading us to promptly introduce them to two PE-grade pricing strategy experts with extensive experience in the consumer products industry. The client selected their ideal choice, and the PE fund was able to achieve its objective of maximizing response rates and demand through strategic pricing and an aggressive seasonal promotional schedule.

Do you have a similar need or any other specific need we can help you with? Contact us here and we will be happy to help you.

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How We Did It: Head of Sales needed to drive value at a recently acquired portco

A private equity firm principal and portfolio company CEO came to us with a need for a Head of Sales for their healthcare logistics company. Since the acquisition, the portfolio company had been growing rapidly, and they needed to make key hires across multiple functions. Moving quickly, we worked to thoroughly understand the client’s specific needs. We introduced them to two sales recruiting firms that specialized in senior go-to-market roles in the healthcare space. After a thorough vetting process, the CEO made a decision and hired one of the candidates presented. To date, the partnership is a success and going smoothly.

Do you have a similar need in the interim exec area or any other unique need we can help with? Contact us here and we will be happy to help.

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REDIRECTED Bolster your network with specialized due diligence experts

One of the most challenging things about running a business, particularly in an ever-changing economic environment, is quickly finding the right-fit resources to effectively provide high-value solutions. If you’re an upmarket fund, it’s easier to tap into big groups and their A-teams because budgets allow for this spend.

But if you’re sitting squarely in the middle market, you may be better off sourcing niche, specialized individuals, or small groups who understand the nuances associated with portfolio companies of that size. This does not mean you won’t get A-players. In fact, the opposite is true. Service providers who are built for the middle market aren’t generalists: they have specific functional and resource-area expertise and come with decades of experience.

What does this look like in practice? 

Below are two examples of middle-market funds that worked with BluWave to identify specialized due diligence groups.

If you want to learn more about how we did it, and if we can provide resources for your fund or portfolio company, please get in touch!

How We Did It: Healthcare Turnaround and Performance Improvement Case Study

A multi-site healthcare provider portco was in need of turnaround expertise to help improve their growth-stalled performance. Moving quickly, we worked to thoroughly understand the client’s specific turnaround needs. Tapping into our Intelligent Network, we were able to match the client with a resource who fit their exact requirements (including geographic location) and was able to efficiently start moving on the strategy. In the short-term, the PE fund was able to quickly gain confidence in the interim executive. In the long-term, the PE fund hired the candidate full-time to lead and execute the turnaround plan. 

 

For the full story, read the case study here.

How we did it: Digital marketing due diligence case study

Our PE fund client needed a resource to perform digital due diligence for an e-commerce-enabled aftermarket products business. They needed a full overview of the digital landscape, including SEM, SEO, UX, conversion path analysis, Google Analytics, and digital GTM strategy. We used our extensive experience in digital marketing due diligence to immediately connect our client with expert groups from our invitation-only Intelligent Network. They used the insights gathered from the chosen digital marketing group to make an informed decision and quickly close on the investment opportunity. Ultimately, we were able to help the client find a clear path forward. 

For the full story, read the case study here.