Customer Type: PE Firms
Veterinary Business Needs Help with Complex Data Warehouse Software
Service Area: Technology
Client Type: Lower-Middle Market PE Firm
Service Provider Type: Business Intelligence & Analytics Firm
Industry: Technology – Software
The Need
Comprehensive Data Warehouse for Veterinary Business
The PE firm required a robust data warehousing solution for a new veterinary software platform under LOI. The project aimed to consolidate various data systems like CRM, general ledger, billing and payroll into a single warehouse for efficient reporting.
The Challenge
Integrating Multiple Systems into a Unified Data Platform
The primary challenge was integrating data from dozens of animal hospitals, each with local servers and different practice management systems. The firm needed a data warehouse that could handle various data sources and provide the capability for sophisticated data analytics and visualization.
How BluWave Helped
Identifying Business Intelligence, Data Warehousing Expert
BluWave utilized its extensive network to connect the client with a business intelligence and analytics firm proficient in healthcare data compliance and capable of setting up a full data stack. The chosen firm had to have the expertise to pull and visualize data from multiple systems while ensuring HIPAA compliance.
The Result
Streamlined Data Management and Enhanced Analytics Capabilities
The collaboration led to the successful implementation of a data warehouse that efficiently consolidated data from various systems. This new setup allowed for more sophisticated data analysis and visualization, providing invaluable insights into the veterinary business’s operations and finances, thus aiding in strategic decision-making across multiple portfolio companies.
Procurement, Sourcing Resources for Manufacturing Industry
Procurement and sourcing are critical components of manufacturing operations, directly influencing efficiency and cost-effectiveness. Fleet diligence, distribution assessment and supply chain management are among the more popular use cases BluWave sees.
We frequently field procurement and sourcing project requests from the manufacturing industry, giving us a deep understanding of the service providers that are best-suited to help private equity portfolio companies as well as private and public companies with these challenges.
Here are some of the top procurement and sourcing use cases and how they can help your business.
CASE STUDY: More Than $14 Million Saved on Resin Procurement for Plastics Company
Fleet Diligence/Assessment
Effective fleet management is crucial for optimizing logistics and controlling costs. By regularly assessing fleet operations, manufacturers can uncover potential savings and improve transportation efficiency, which is essential for timely product delivery and overall operational agility.
READ MORE: What is Procurement & Sourcing?
Distribution Assessment
The efficacy of a distribution network plays a pivotal role in meeting customer demands and maintaining product flow. Thorough assessment of this network allows manufacturers to identify bottlenecks, streamline processes and enhance the speed and reliability of product deliveries.
Construction Diligence
Construction diligence ensures that manufacturing facilities meet all necessary standards and contribute to efficient production lines. This aspect covers everything from initial design to ongoing maintenance, directly impacting the effectiveness and safety of manufacturing operations.
Asset Integrity Diligence
Maintaining asset integrity is vital for ensuring consistent production quality and avoiding costly downtimes. Regular checks and balances help in early identification of potential issues, enabling timely interventions and prolonging the life span of manufacturing assets.
Clinical Trial Operations Diligence
For manufacturers in the pharmaceutical sector, clinical trial operations diligence is key to ensuring product efficacy and safety. This process involves rigorous testing and compliance with stringent regulatory standards, directly impacting the success and credibility of products in the market.
Safety Diligence
Prioritizing safety in manufacturing not only fulfills regulatory requirements but also fosters a responsible workplace culture. Implementing rigorous safety protocols and regular training sessions can significantly reduce workplace accidents and enhance overall productivity.
Process Mapping
Process mapping identifies inefficiencies in manufacturing operations, offering insights for improvements. By analyzing each step of the production process, manufacturers can make informed decisions to streamline operations, reduce waste and optimize resource allocation.
Facility Planning
Strategic facility planning is integral to maximizing production efficiency. It involves optimizing the layout and design of manufacturing spaces, ensuring that every element from machinery placement to workflow is conducive to peak operational performance.
Packaging Diligence
In manufacturing, the importance of packaging extends beyond aesthetics to include functionality and protection. Ensuring the right packaging materials and designs can significantly reduce damages during transit and enhance customer satisfaction.
Supply Chain Diligence
A robust supply chain is essential for maintaining manufacturing momentum. This can be improved by supply chain optimization, focusing on vendor management, inventory control and contingency planning to handle disruptions effectively.
Procurement and sourcing are essential to manufacturing businesses. By working with experts who understand their business, manufacturers can enhance their operational efficiency and reduce costs that give them a competitive edge.
“You can engage a firm that can take out costs of your business for non-core expenditures,” BluWave Co-Head of Research and Operations Scott Bellinger says. “The beauty of it is these groups work off of a gain-share model, so they have an incentive to help you save money.”
BluWave’s research and operations team is here to connect you with specialized manufacturing resources. Set up a scoping call and you’ll get a short list of PE-grade option in less than one business day.
Emily Holdman, Permanent Equity | The Art of Lasting Partnerships in Private Equity
IT Due Diligence: Technology, Software Industry
When a private equity firm is evaluating an acquisition target, they perform thorough due diligence before making any decisions.
One part of the due diligence process that tends to come later in the process is information technology (IT) due diligence. While important in any industry, this practice is particularly apropos for companies in the technology software industry.
“For companies that have kept up, they can have a significant competitive advantage,” BluWave Head of Technology Houston Slatton says. “But for companies that haven’t embraced technology or managed it well, it can become a liability or a risk to their operations.”
READ MORE: What is Commercial Due Diligence?
What is the IT Due Diligence Process?
Here are the top-level steps involved with IT due diligence:
- Preparation
- Information Gathering
- Asset Evaluation
- Contract Review
- Risk and Opportunity Identification
- Recommendations
READ MORE: What is IT Due Diligence?
IT Due Diligence for Technology Software Companies
Here are how each of those steps could apply to due diligence being conducted on software companies:
Information Gathering
Gathering information is a rigorous process involving deep dives into the software’s architecture, databases and development practices. This phase assesses the company’s technical assets and the quality of its codebase, exploring aspects like scalability, maintainability and technical debt.
Asset Evaluation
In asset evaluation, the focus shifts to the software itself. What is the state of the product’s lifecycle? Are the technologies used up-to-date and supported? The evaluation also reviews the company’s intellectual property portfolio for patents, trademarks and copyrights that protect its innovations.
Contract Review
The contract review scrutinizes agreements with customers, vendors and partners. For software companies, this could involve licensing agreements, open-source software dependencies and third-party integrations that are essential for the company’s products and services.
Risk and Opportunity Identification
Identifying risks requires an understanding of the regulatory environment, especially for data privacy and security. What are the potential compliance liabilities? Conversely, where are the opportunities for innovation or market expansion? This step often reveals how IT can be a growth enabler or a liability.
“If you don’t use the tools well – if you don’t maintain them – a good IT diligence report is going to highlight those issues, but also will highlight those as recommendations or opportunities to drive value in the business post-close,” Slatton says.
READ MORE: How To Hire an Interim CTO
Recommendations
The final recommendations are a strategic mix of immediate actions and long-term plans. For a technology software company, this might include advice on enhancing security, improving system integration or investing in new technologies to keep the company ahead of the curve.
The IT due diligence process is integral to understanding the true value of a technology software company. It’s not just about identifying what works and what doesn’t – it’s about uncovering how the technology can drive the company forward.
Private equity firms that don’t perform thorough IT due diligence may find themselves facing unforeseen challenges down the line. But those that prioritize this step can use it to guide their investment strategy, uncover new opportunities, and ultimately, ensure that their acquisition is set up for success in the rapidly evolving tech landscape.
READ MORE: Why Mergers & Acquisitions Fail
For expert guidance through the IT due diligence process, reach out to BluWave. Our research and operations teams can connect you with the best IT due diligence experts in the industry, handpicked for your situation.
“The specialized providers in the Business Builders’ Network have in-house employees who focus on doing these types of assessments for investors,” Slatton says. “They’re seasoned technology professionals who know how to quickly assess an organization through the lens of private equity firms and other acquirers.”
Start a project with us today and we’ll provide a short list of service providers in less than 24 hours.
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Dave Feierstein, Ronin Equity Partners | Transforming Business with a Hybrid Investor-Operator Approach
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Jay Hernandez of Raymond James: M&A Process Best Practices
Jay Hernandez recently joined the Karma School of Business podcast, sharing his insights into the dynamic world of private equity.
In his discussion with host Sean Mooney, Hernandez, an investment banker focused on industrial technology, talked best practices in mergers and acquisitions.
He emphasized the importance or preparation, understanding buyer psyche and building trust and reputation.
Here are some insights from their conversation.
3 Takeaways from Jay
1. M&A Preparation
Hernandez emphasized the importance of thorough preparation before entering the market. This involves not just understanding one’s own business but also being ready for the intense scrutiny that comes with merger and acquisition processes.
“It’s never too early to prepare for that event,” Hernandez said. “You always have to be prepared.”
Mooney agreed: “The more you do that, the more luck you tend to have in business and life, but also M&A processes.”
READ MORE: Why Mergers and Acquisitions Fail
Hernandez also stressed the importance of talking to key players early in the process.
“Engage your advisors, engage your experts well in advance. And it could be even a year or two in advance,” Hernandez said.
Mooney said that doing so can ensure that all aspects of the business are aligned and ready for the sale process.
“You should probably be talking with an investment banker right now so that when that light is green, you’re getting an early start,” he said.
2. Understanding Buyer Psyche
Hernandez also pointed out the increased depth and detail in buyers’ inquiries within M&As.
“The psyche of the participants has changed, and particularly on the buyers, and where that’s changed a lot is the areas that they’re digging into and the depth of which they’re digging into,” he said.
Mooney underscored the need for sellers to understand and anticipate the buyer’s perspective. He highlighted the diligence PE firms conduct in preparing for M&A processes.
“Private equity firms are spending more time making sure things are absolutely buttoned up so that they’re prepared to move as quickly as possible through an M&A process,” he said.
READ MORE: Merger Planning & Integration: Best Practices for Private Equity Firms
3. Building Trust and Reputation
Finally, Hernandez emphasized the necessity for buyers to maintain integrity and straightforwardness during the M&A process.
“You need to make sure that you’re doing it right for the company that you’re looking at, because at the same time, you’re going to be their partner going forward,” he said.
Mooney cautioned about the fragility of reputation.
“It takes a lifetime to build a reputation and literally 30 seconds to ruin it,” he said.
Hernandez added that “99.999 percent of the groups that we deal with and the buyers that we deal with are straight shooters and do exactly what they’re going to say.”
READ MORE: Post-Merger Integration: Framework, Keys to Success
Hernandez’s entire conversation with Mooney offers unique insight into the world of mergers and acquisitions from an investment banking perspective. (Stay tuned until the end for a time- and stress-saving life hack about cooking the perfect steak.)
When you’re done listening, head to the main BluWave podcast page for more conversations with business leaders.