Private and Public Companies - Page 4 of 17

How To Raise Prices Strategically with Sales Team Buy-In

October 12, 2023 Brad Gerick

When input costs increase, businesses must adjust their pricing strategy accordingly. But it’s not as simple as passing along those costs to the consumer.

First, the sales team must buy in to the new strategy. (This can be particularly challenging for private equity firms and their portfolio companies.) Secondly, you must do so in a way that doesn’t scare off the customer.

But as BluWave CEO and founder Sean Mooney discussed with ParkerGale’s Cici Zheng on the Karma School of Business podcast, those fears are often unfounded when you dig a little deeper.

Listen to the Full Episode

Let’s learn more from these two about how to strategically raise prices, whatever business and industry you’re in.

Challenges of Raising Prices

Sales Team Buy-In

“I think our portfolio companies might be hesitant to think about price increases or think about value-based pricing,” Zheng said.

Mooney agreed, calling it the “number one area that’s underutilized” by private equity firms that BluWave supports.

Quarterly Report: More Pricing Insights

“In part because it gets the most resistance from the portfolio companies, particularly from sales leadership,” he added. “Because it’s really scary if you’re a head of sales and you say you got to raise price.”

Zheng said this is best overcome by generating belief in the company’s products or services.

“If you think about the amount of investment that we’re putting in, in an ideal world, your best-fit customers are also valuing what that is and you’re able to get a value-based price for it,” Zheng said. “At the end of the day, it comes back to, if we really feel [that] the types of companies we invest in have great products, great NPS scores, great retention scores.”

Retaining Customers

Related to resistance from the sales team is often a fear that customers will be scared off by a higher price point. And the thought of being the one to share that increase can be daunting.

But once again, belief in the product is a great weapon in this situation.

“What are our product managers and heads of engineering and engineering talent doing? They’re continuing to invest in that product,” Zheng said. “Hopefully we’re able to convey this to the sales team who have to be at the front line to convey it to the customer of like these are not price increases for the sake of price increases.”

Start Your Project

Value-Based Pricing

The beauty of value-based pricing is that businesses attract customers who are willing to pay for a superior product. Portfolio companies owned by ParkerGale and like-minded private equity firms aren’t courting bargain hunters anyway.

Zheng said that this high-quality approach “justifies what we think this product actually provides to you. And if you were really looking for the cheapest price, then we wouldn’t be having this conversation because that’s usually not the positioning that we have.”

After all, if the business is working so hard to create a quality product or service, why wouldn’t they expect customers to be willing to pay more?

“We’re going and improving the products and updating the modules and features and all these things,” Zheng said. “Are we on the flip side also making sure we’re getting that value-based pricing from our customers?”

Knowing that pricing isn’t the top priority for their target customers gives portfolio companies more flexibility, dousing the fear of scaring them off.

Access Pricing Strategy Resources

Data-Driven Pricing Strategies

No matter how much a business believes in its products and services, it can’t blindly adjust its prices and hope for the best. They must make data-based decisions.

One way to do this is by paying close attention to macroeconomic factors.

“We’re thinking a lot more intentionally about pricing and making sure that we’re not just staying flat, we’re looking at what’s going on in the market,” Zheng said.

There are other metrics that can influence a pricing strategy, though. According to Zheng, NPS scores and retention data are strong indicators of whether a business has a “very solid product.”

For private equity firms, much of this crucial research can be done before a company is ever acquired.

Zheng said that during the commercial due diligence phase, ParkerGale often deploys voice of customer studies to learn what are customers’ top three key purchase criteria. Pricing seldom makes the list.

“Especially when we’re selling enterprise software, these are mission-critical tools and products,” Zheng said. “The customer is not looking for the cheapest one.”

READ MORE: What is Commercial Due Diligence?

In-depth analysis can also help companies learn when they have taken their increases too far, allowing them to adjust back down.

“I would argue if you’re never losing on price, then you’re priced too low. You should be losing a certain percentage of your deals on price,” Zheng said. “But if you can collect the data on the other side, if you’re doing win-loss analysis and calls like that, then you should be able to say, ‘OK, we are hearing now that we have enough actual data, not anecdata, to say we are actually losing on price too much, and so therefore we need to adjust.’”

Benefits of Pricing Consultants

As meticulous as private equity firms and other top business leaders are about their companies, a world-class pricing strategy often requires world-class help.

Mooney mentioned how underutilized pricing resources are, but that’s not because they’re in short supply.

The Business Builders’ Network is full of pricing experts who work on an industry-specific basis. They know the questions to ask, the data to analyze and the levers to pull to make sure you’re setting prices with confidence.

Listen to the Full Episode

“We’re in contact with the service providers in our network nearly every day,” Co-Head of Research and Operations Keenan Kolinsky said. “Before clients even reach out, we already know which providers will likely be best suited for their pricing project. That way, we can hit the ground running as soon as we scope a client’s need.”

These third-party resources are experts in segmenting customers, identifying value drivers, developing measurement tools and pricing structures, conducting sensitivity analyses and more.

They’re on standby to help you determine your target customer base’s key decision factors, willingness to pay, preferences and perceptions.

Lastly, they’ll present this information – with speed and accuracy – in a way that’s actionable for your business.

Start Your Pricing Project

Contact our research and operations team today, and tap into the same invite-only network that the world’s best PE firms – from ParkerGale and beyond – use to set their pricing strategies.

Within a single business day, you’ll be connected to a shortlist of options that will be chosen for your exact situation and vertical.

Manufacturing Momentum: Challenges, Opportunities in the Modern Landscape

October 10, 2023 Brad Gerick

Manufacturing businesses are faced with evolving challenges, especially amid an uncertain economy, constantly pressured from different angles by policy decisions and global events. BluWave sees this every day in the projects it supports for hundreds of private equity firms and thousands of businesses.

Whether in human capital, operations, growth strategy or technology, today’s business leaders have their hands full.

Access the Webinar On-Demand

In a recent webinar, Co-Head of Research and Operations Keenan Kolinsky discussed with Product Manager Ryan Perkins the challenges and opportunities in this industry.

An man in a hardhat stands facing yellow industrial equipment, like backhoes, in a warehouse.

The Rising Importance of Human Capital in Manufacturing

The manufacturing sector was once driven primarily by machinery and raw materials. But now it’s recognizing the importance of its most valuable asset: people.

In fact, 74 percent of manufacturers say that “attracting and retaining a quality workforce” is a top challenge, according to the National Association of Manufacturers (NAoM).

Interim executives have emerged as a pivotal solution in this landscape. These temporary business leaders bridge critical leadership gaps, ensuring that companies don’t lose momentum during transitions.

“Interim executives can help businesses keep their foot on the value creation pedal,” Kolinsky says.

Their role is especially crucial in a volatile economic environment where leadership vacancies can’t be left open for extended periods.

But it’s not just about filling gaps. The recruitment process itself is undergoing a transformation. The emphasis is shifting from generalist recruitment approaches to specialized, industry-specific strategies. Manufacturers are realizing that to drive growth and innovation, they need the right people in the right roles, making executive searches a top priority, too.

Manufacturing Resources for Your Business

Operational Excellence: The Backbone of Manufacturing Success

Turning toward a more traditional problem, nearly half of manufacturers identified supply chain issues as a top challenge, per the NAoM. Even with the peak of the COVID pandemic disruption behind us, this issue persists.

“With manufacturers…experiencing a variety of economic and even geopolitical pressures, manufacturing operations and supply chains simply have to be tighter than ever to achieve desired margins and outcomes,” Kolinsky said.

In response, many manufacturers are turning to expert third-party resources to optimize their supply chains. From right-sizing inventory to reducing lead times and optimizing supplier networks, the focus is on efficiency, cost savings and performance.

Beyond the supply chain, there’s a broader push toward operational excellence. Lean Six Sigma principles, rooted in the Toyota production system, are being adopted to streamline processes, identify bottlenecks and drive efficiency. The goal? Faster, more efficient production with greater precision.

Watch the Replay Now

Strategizing for Growth in a Competitive Landscape

A weaker domestic economy can poses unique challenges. During those times, growth strategy becomes the north star guiding manufacturers. But how do they chart a course for growth amid such turbulence? The answer is data-driven strategies.

“Markets shift often and they shift quickly,” said Kolinsky, who emphasized the importance of real-time insights. “Base your strategy or plan for growth on current market data and dynamics.”

READ MORE: Analytics, Data & AI Resources

By leveraging data analytics and visualization tools, manufacturers can gain actionable insights, track KPIs and make informed business decisions.

With the advent of more accessible artificial intelligence tools, many businesses in the manufacturing industry and beyond have been focusing on essential pre-cursor activities focused on data hygiene. These will lay the groundwork for a more seamless integration once they’re ready to use AI to accelerate growth.

Start Your Manufacturing Project

Embracing Technology: The Future of Manufacturing

The digital revolution is reshaping the manufacturing landscape.

According to Alithya, 43 percent of manufacturers came into 2023 planning to increase their year-over-year spending on technology. it’s clear that the industry is gearing up for a tech-driven future.

“The manufacturing industry is really digitizing rapidly and in more ways than one,” Kolinsky said.

From IT strategy to system selection and implementation, manufacturers are recognizing the need to align their technology tools with broader business objectives.

But it’s not just about adopting the latest tech solutions. Effective change management is crucial. As manufacturers transition to modern systems, they must ensure that their teams are well-equipped and trained to leverage these tools to their fullest potential.

BluWave is here to help you connect with best-in-class, niche-specific manufacturing resources to help with human capital, operational excellence, growth strategies, technology and more.

Contact our research and operations team to scope your need and get quickly connected with the service provider you need in less than one business day.

Start Your Manufacturing Project

Joe DeLuca of NewSpring Capital: Navigating Challenges with Empathy, Strategy

October 4, 2023 Brad Gerick

Joe DeLuca recently joined the Karma School of Business podcast to talk private equity. The operating partner with NewSpring Capital spoke with host Sean Mooney about the significance of building genuine relationships during crises, the evolution and adaptability of NewSpring’s value creation model and the unparalleled power of collaboration, drawing parallels from the Manhattan Project.

Their insightful conversation sheds light on the human-centric approach to business and the pivotal role of adaptability in the private equity landscape.

Here are some of the top takeaways from their conversation.

Listen to the Episode

3 Takeaways from Joe

1. Building Relationships in Crisis

In the face of unprecedented challenges, such as the onset of the COVID-19 pandemic, DeLuca underscored the importance of human connection and understanding.

“I tried to understand what the people that were working at our business, just what was going on so that we could relate to each other,” he said. “Then I could ask of them, ‘Hey, OK, we really need to do X.’ And then there was some empathy and some relationship building in the first week that I just felt was really critical because it was all happening real-time.”

This sentiment is not just about business strategy but about genuine human empathy. By taking the time to understand the personal challenges faced by employees, leaders can foster a sense of unity and shared purpose.

“People are really what drive these companies,” Mooney added.

In an era where technology and automation are at the forefront, it’s a poignant reminder that at the core of every successful venture are the people who make it run.

2. Evolving Value Creation Model

Adaptability is a hallmark of successful businesses, and NewSpring’s evolving value creation model is a testament to this.

“We started several years ago with what we call the value creation team,” DeLuca said. “The concept was, ‘w’Well, let’s get somebody from each of the disciplines. Let’s have a finance person, a marketing person, an HR person, an IT person.’ You sort of get the idea. ‘And let’s have them on tap to call on them and add value where and when needed.'”

This shift from a broad, external expert-based approach to a more focused, strategy-specific model highlights the importance of being nimble and responsive to the unique needs of each investment.

“The biggest single use case we see in private equity is people,” Mooney said. “It’s every quarter, and it gets bigger and bigger and bigger.”

The emphasis here is clear: while strategies and models are vital, it’s the people who execute them that truly drive value and success.

Download Latest PE Insights Report

3. The Power of Collaboration

The story of the Manhattan Project, as recounted in “The Making of the Atomic Bomb,” serves as a powerful metaphor for the importance of collaboration in achieving seemingly insurmountable goals.

DeLuca drew attention to the unlikely partnership between General Leslie Groves and Robert Oppenheimer.

“These guys pulled it off, and they were completely opposites,” he said. “They were like the stereotypes.”

This collaboration between two starkly different individuals underscores the idea that diverse perspectives can come together to achieve greatness.

“If you work with great people, you kind of understand the situation, come up with a plan,” Mooney said. “If you’re tenacious and you’re going to find a way, and I think that so much just reflects the whole conversation that we’ve had here today.”

The underlying message is clear: with the right team and a shared vision, any challenge can be overcome.

Start Your Project with BluWave

DeLuca’s insights on the importance of understanding and connecting with employees during challenging times, the adaptability required in the ever-evolving world of private equity, and the lessons drawn from historical collaborations, make his episode well worth a listen.

When you’re done listening, head to the main BluWave podcast page for more conversations with business leaders.

Fractional CFOs: What They Do, Why You Might Need an Interim CFO Instead

September 22, 2023 Brad Gerick

The chief financial officer is crucial role. But not all businesses can afford – or are ready – for one.

One alternative to committing to a full-time (and expensive) C-suite financial executive is a fractional CFO.

“The biggest role of a fractional CFO is going to be high-level overview. The business is typically not going to be big enough to really justify a full-time CFO,” BluWave Head of Finance Justin Scott says. “But you do need somebody to validate the financial statements and make sure that your cash flow’s in line. Things that the controller or even a super-controller may miss.”

Let’s look at this part-time position in more detail, and explore whether a full-time temporary CFO – an interim – makes more sense.

Connect with a Finance Executive

What is a Fractional CFO?

A fractional CFO provides high-level financial oversight for businesses that might not be able to justify a full-time CFO.

“The biggest role of a fractional CFO is going to be a high-level overview. You just need that extra set of eyes,” Scott says. “It’s more of a validation role.”

The “fractional” part of the title indicates that the person in this role is working a “fraction” of what would normally be a full work week. In fact, it’s not unusual for someone to serve as a fractional CFO for three or more businesses simultaneously.

A fractional CFO is a great option to help secure funding, and then establish the ongoing reporting process and line of communication with the funding source.

“If you use a fractional CFO because you want to establish a line of credit, that line of credit is going to have regular monthly reporting that has to be provided and you may not want your controller working on it,” Scott says.

While there are other use cases, these are among the more common ones.

How Many Hours Does a Fractional CFO Work?

This will vary, but again, by definition the role is a fraction of full-time.

That could mean as little as 5 hours per month, or as much 10-plus hours per week, which is why people in this role often support multiple businesses at once.

There are, of course, both positives and negatives to having someone work for such a limited amount of time.

Benefits and Drawbacks

Pros

1. Cost-Effective

Hiring a fractional CFO is more budget-friendly than bringing on a full-time executive.

Instead of paying a salary plus benefits, you can budget for a set amount of hours each week or month.

Even someone who charges $250 per hour, for example, would only cost $2,500 in a 10-hour month – far below the cost of a full-time chief financial officer.

“I think the larger use case is they just don’t have a need for a full-time one,” Scott says. “They probably have a controller or a super-controller in place that gets them almost everything that they need, and they just want an extra set of eyes for peace of mind. The expense is definitely going to be your primary driver.”

2. Flexibility

A fractional CFO is usually brought in as a specialist in one particular area of the finance function. In fact, CEOs could leverage multiple fractional CFOs at the same time, each focusing on different areas.

Since a part-time hire works so few hours per company, they typically have more flexibility, too.

3. Expertise on Demand

For specific tasks in advanced functionalities, a fractional CFO can be invaluable.

One person can be brought in, laser-focused on a project, and only cost the company the amount of time needed to complete it.

4. Mentoring and Coaching

Whether the person running a company’s finances full-time is an ambitious controller or a green CFO, bringing in a fractional CFO to cover their weaknesses can benefit both the company as well as the permanent hire.

The fractional CFO can not only ensure that the full-time person’s blind spots aren’t a liability, but they can train them along the way so that they’re able to do it on their own in the future.

Cons

1. Limited Business Insight

Since a fractional CFO is not fully engaged, they might lack a deep understanding of the company’s needs.

“I use myself as the example here. There’s a lot of things that I catch or help plan for because I’m intimately involved in every step of the business,” Scott says. “If I didn’t understand the complexities of what BluWave does, it would be very easy to give a vanilla, out-of-the-box opinion on something and then it blow up in our face.”

2. Less Commitment

Fractional CFOs might not feel as invested in the team and organization they’re supporting if they’re only involved a few hours a week.

“There’s no long-term commitment,” Scott says.

This means that if things start to go south, they’re not going to feel the pain as much and therefore might not be as motivated as someone whose career is on the line.

3. Lack of Focus

As mentioned, fractional CFOs are likely to be working for multiple companies at the same time.

Depending on the urgency of projects from one situation to the next, the fractional CFO may not be as locked in on your company’s needs as they would be otherwise, despite their best efforts.

4. Risk of Losing Them

Some finance experts are content to keep their hands in multiple pots. Others, however, would be happy to jump to a full-time position if the right opportunity presented itself.

Instead of receiving notice about their departure weeks in advance, they may leave you high and dry for a business that’s willing to pay them more.

“That can almost be even bigger risk because fractional CFO by nature already has less understanding of your business, and now they also have less commitment,” Scott says.

Perhaps your business can’t justify a permanent CFO – or you’re going through a leadership transition or preparing for sale – but you still need the full-time commitment of a finance executive.

An interim chief financial officer, then, may be the perfect solution to strike that balance.

Contact BluWave

Fractional CFO vs. Interim CFO

An interim CFO includes all the pros of a fractional CFO, but practically none of the cons.

That’s not to say that there aren’t also drawbacks of an interim vs. a permanent CFO, but they tend to be a much more impactful solution than someone who only engages with your business for a few hours per month.

An interim CFO is typically more engaged, provides a deeper understanding and is committed full-time.

This deeper involvement brings with it process improvements, better cash flow management and strategic partnership benefits to CEOs, Scott says.

“The interim CFO is going to be more of a strategic partner.”

Why You Might Hire an Interim CFO Instead

Scott says portfolio companies and private and public companies that are ready to add a full-time CFO for the first time are well-positioned to seek an interim.

Specialized Recruiters for Your Business

Here are some reasons why:

1. Commitment

Interim CFOs offer a higher level of dedication compared to their fractional counterparts.

“Now all of a sudden, this is their game. It’s their full-time focus, so they’re going to be digging through everything,” Scott says. “You’re going to get process improvements. You’re going to get better cash flow. You’re going to get all of the things that a full-time CFO brings to the table.”

2. Strategic Partnership

CEOs can expect more from an interim CFO than a fractional solution.

“They’re more engaged with business,” Scott says. “They have a deeper understanding of the business. They’re just going to get more out of the relationship.”

READ MORE: Interim CFO for a Financial Crisis

3. Cost-Effective in the Long Run

While the initial cost might be higher, the benefit an interim CFO brings in terms of expertise and commitment can significantly outweigh the expenses.

“The interim CFO is going to be more of a value-add,” Scott says.

Their billable hours can also be capped, and they typically don’t take benefits like health or 401ks.

Whether you seek a fractional, interim or full-time CFO, the Business Builders’ Network is loaded with private equity-grade options for all company types and industries.

The resources BluWave provides have been vetted by multiple PE firms before joining its invite-only network. It’s no surprise, then, that interim CFOs are consistently among the most requested connections we make.

When you’re ready to meet your next chief financial officer, our research and operations team will provide a short list of industry-specific candidates within a single business day. Set up a scoping call to get started today.

“It’s a big step to go from a fractional CFO to a full-time role,” Scott says, “but the benefits are undeniable.”

Hire Your Next Finance Leader

Interim CFO with Expertise in Commodities, Hedging for Manufacturing PortCo

Industry: Manufacturing

Service Area: Human Capital – Interim Leadership

Client Type: Portfolio Company – Food Ingredients Facility

Service Provider Type: Interim CFO

The Need

Expertise in Financial Management and Hedging

The CFO was leaving a B2B food ingredients portfolio company. The business, with significant operations in commodities and hedging, needed an interim CFO who could navigate the complexities of their financial landscape. This included managing large-scale hedging operations, understanding the impact of hedging on P&L and ensuring covenant calculations were accurate.

The Challenge

Hands-On CFO with Industry Expertise

The company’s operations were intricate, with 85 percent of their capacity for 2023 already booked and hedged. This created a significant exposure on their books, making expertise in commodities and hedging non-negotiable. Additionally, the ideal candidate would be someone who had experience in a private equity environment, understood liquidity and 13-week cash flow, and was more finance-oriented than purely accounting-focused.

How BluWave Helped

Short List of Industry Finance Experts

BluWave leveraged its extensive network to identify a short list of interim CFOs who not only had the required expertise in commodities and hedging but also had a track record in PE environments. The portco and its PE firm selected a candidate with more than three decades of experience, including roles in financial leadership and a deep understanding of the agri-commodity space. Their hands-on approach and willingness to be on-site, even if it meant frequent travel, made them an ideal fit.

The Result

Recipe for Sweet Success

With the interim CFO on board, the company maintained seamless financial operations, ensuring that their hedging strategies were effectively managed and that their financial reporting remained accurate. The temporary executive’s expertise allowed the CEO to focus on other critical aspects of the business, confident that their financial operations were in capable hands.

Targeted Market Research for a Software Technology Company

Industry: Technology – Software

Service Area: Voice of the Customer

Client Type: Portfolio Company – B2B Data Management

Service Provider Type: Market Research Firm

The Need

Specialized Market Research for Master Data Management

A B2B data management portfolio company sought a market research firm to conduct an in-depth survey. Their objective was to delve into market awareness, trends in Master Data Management (MDM) and the perception of various brands in the software industry. With MDM being a pivotal enterprise software tool, understanding its market positioning was paramount.

The Challenge

Quality Insights Within Budgetary Limits

Having previously approached another market research firm, the company found their offerings too costly for the intended survey. The challenge lay in identifying a service provider with profound knowledge of MDM and the capability to target specific roles such as IT, Data Architecture Management and Data Cleaning, all while staying within the budget.

How BluWave Helped

Bridging the Gap with Expert Market Research

BluWave swiftly navigated its vast network to pinpoint a market research firm that not only had a deep-rooted understanding of MDM but also boasted expertise in conducting brand-centric surveys. The chosen firm’s proficiency in targeting the desired roles ensured the survey would resonate with the right audience, making them an ideal match for the portfolio company’s requirements.

The Result

‘Good Partner’ for Great Value

With the support of the handpicked service provider, the portfolio company executed a survey that furnished them with invaluable insights into market awareness, MDM trends and brand evaluations. The research was not only enlightening but also adhered to the company’s budgetary constraints, providing optimal value.

The service provider you selected was both affordable and a good partner for our portfolio company.
-Partner at PE Firm

Transforming Big Data into Actionable Insights for Legal Services

Industry: Professional Services

Service Area: Technology

Client Type: Portfolio Company – B2B Legal Services

Service Provider Type: Business Intelligence, Analytics and AI Firm

The Need

Efficient Analytics for Transaction Lode

A portfolio company in the B2B legal services sector reached out with a specific challenge. They had an Excel dataset with three tabs, each containing 1 million rows of transaction data. Their objective was to create cohort analyses and slice and dice this vast amount of information. Given Excel’s limitations, they needed a more robust solution.

The Challenge

Large Datasets and Tight Deadlines

The company, which offers online legal services to SMB customers, had recently accessed a large transaction database that was cumbersome to manage in Excel. They needed to make use of the new data trove for an upcoming project on a short timeframe. Their previous go-to firm, which used Tableau for data visualization, was unavailable for immediate assistance.

How BluWave Helped

The Right Big Data Connections, Fast

Understanding the urgency and the scale of the data challenge, BluWave tapped into its network to identify a boutique business intelligence, analytics and AI firm with the expertise to handle large datasets efficiently. The selected firm was lauded for its ability to work at “deal speed,” ensuring that projects were completed promptly without compromising on quality.

The Result

Seamless Integration, Insightful Analysis

With the expertise of the selected service provider, the portfolio company successfully integrated their vast transaction data into a more manageable and analyzable format. The firm not only set up the database for easy manipulation but also provided rigorous analysis, offering valuable insights that were highly appreciated by the company’s management team during diligence. The entire process, from initial setup to detailed analysis, was completed within the tight deadlines, ensuring the company was equipped for its key upcoming project deadline.

Their analysis was rigorous, and a company’s management team found their work to be insightful during diligence. They operate at deal speed and frequently work late at night and over weekends to ensure clients receive quality work product on time. I’d highly recommend their services.
-Vice President at PE Firm

Matt Cole’s Route to SBJ Capital ‘A Bit Circuitous’

September 15, 2023 Brad Gerick

Matt Cole recently joined the Karma School of Business podcast to talk private equity. The managing director at SBJ Capital spoke with host Sean Mooney about data-based decisions, how he got his start in PE and much more.

Here are some of the top takeaways from their conversation.

Listen to the Episode

3 Takeaways from Matt

1. An Unconventional Route to PE

When asked about his path to the world of private equity, Cole said his journey was atypical.

“Mine is a bit circuitous,” he said. “I feel like it’s a more well-trodden path now and people have to take certain steps and so forth and that was definitely not the case for me.”

Starting in investment banking, Cole transitioned into operations, focusing on understanding the intricacies of making a company successful. His entry into private equity was more opportunistic, stemming from a relationship with a colleague.

He emphasized the importance of his diverse experiences: “It was the right combination of experience that I had to bring banking and operating set of experiences to PE.”

2. Value Creation with a Human Touch

Value creation is at the heart of SBJ Capital’s approach. Matt emphasizes the importance of working closely with family and founder-owned businesses and understanding their unique challenges and opportunities.

“These are family- and founder-owned businesses. They are not looking for someone with necessarily the shiny bulge bracket Wall Street resume to come in and tell them what the next opportunity is with their company,” Cole said. “I think it makes a big difference both in actual experience to be able to say we’ve walked in your shoes and in demeanor and approach for how we present ourselves to these companies and we call them partner companies for a reason.”

For SBJ, value creation revolves around professionalization and accelerating growth. Cole, however, is quick to point out that they approach this with respect and understanding.

“We’ll never come in pretending to know more about that business after a few-month diligence period than the people that have been there for extended periods of time or started that business themselves.”

Data & Analytics Resources

3. Data and Decision-Making

Cole also stressed the importance of being prepared and adaptable. He highlighted the significance of data in driving business decisions and the potential of emerging technologies like AI.

“Part of the value creation story that I didn’t touch on as much before is the use of data and how are you using data? How are you implementing systems?”

Mooney added the importance of sharing information within a company, especially in founder-owned businesses.

“A lot of times the senior member of the teams don’t even know the revenue of the business or certainly don’t know the full P&L or the balance sheet or the income statement,” he said.

Download the AI White Paper

Cole’s transition from investment banking to operations and his adeptness at navigating the complex terrains of the business world make his episode well worth a listen.

When you’re done checking out his episode, head to the main BluWave podcast page for more conversations with business leaders.

Scott Becker of McGuireWoods: Insights from the Mind Behind Becker’s Healthcare

September 8, 2023 Brad Gerick

When Scott Becker speaks, the healthcare and private equity sectors listen. As a partner with McGuireWoods and the founder and publisher of Becker’s Healthcare and Becker’s Hospital Review, Scott’s insights are invaluable. Recently, he shared his journey and perspectives on the Karma School of Business podcast, hosted by Sean Mooney.

Listen to the Episode

3 Takeaways from Scott

1. The Evolution of Becker’s Healthcare

“I started it literally 30 plus years ago,” Becker began, “trying to develop a reputation as somebody who knew the business and legal issues around, at that point, surgery centers, better than anybody else.”

This drive was not just about establishing a brand but about creating a niche in a saturated market. Scott’s vision for Becker’s Healthcare was rooted in his legal background and his desire to provide thought leadership in the healthcare sector.

Over the years, the focus of Becker’s Healthcare expanded. While it was initially centered around surgery centers, it now revolves around hospitals, health systems and health IT, among other areas. This evolution showcases Scott’s adaptability and his keen sense for market needs.

2. Recognizing and Capitalizing on Opportunities

“A lot of it is not brilliant. It’s following what’s working and doubling down on it as a constant business imperative,” Scott emphasized.

This approach is not about reinventing the wheel but about recognizing what’s effective and enhancing it. Scott’s success is a testament to his ability to identify emerging trends and strategically position himself and his ventures to benefit from them.

Mooney, echoing this sentiment, added, “If you’re the smartest person in the room, you need to find a new room.”

Healthcare Resources

3. Challenges and Trends in Healthcare

Scott delved deep into the current landscape of healthcare, highlighting several significant trends: “Challenges with margins, labor shortages, especially in the physician and nursing sectors, and the increasing involvement of various players in the healthcare space.”

These challenges are not isolated but are interconnected, shaping the future of healthcare. For instance, as healthcare sites increase, there’s a projected shortage in certain specialties, like anesthesiologists. This, in turn, affects patient care, with many unable to access their doctors promptly, leading to a resurgence in ER visits.

Scott’s insights provide a comprehensive overview of the challenges and opportunities in the healthcare sector, offering a roadmap for professionals navigating this complicated domain.

READ MORE: Specialized Healthcare Recruiters

Becker’s keen insights offer a deep dive into the intricacies of healthcare and private equity. His journey from attorney to entrepreneur and his ability to recognize and seize opportunities make him a voice worth listening to in the industry.

When you’re done checking out his episode, head to the main BluWave podcast page for more conversations with business leaders.