Revolutionizing Healthcare: Roles of AI, Machine Learning

The integration of artificial intelligence (AI) and machine learning in healthcare is poised to revolutionize the industry by enhancing efficiency, transforming medical education and augmenting the role of healthcare professionals.

The latest Private Equity Insights Report from BluWave shows strong interest in AI data analytics as well as robust activity in the healthcare industry.

LISTEN: The Window of Opportunity: Healthcare and PE Insights

Scott Becker, founder of Becker’s Healthcare and Partner at McGuireWoods, discussed these topics with BluWave CEO and Founder Sean Mooney on the Karma School of Business podcast.

Neurology, doctor and planning surgery with tablet in office with x ray, results and patient data on tech for expert consultation. Cancer, research and black woman to study the brain or neuroscience.

Efficiency in Healthcare Processes

Becker’s insights into the role of AI in healthcare reveal a significant shift toward efficiency, particularly in areas like revenue cycle management.

He spoke to the remarkable reduction in workforce requirements.

“You’ve got places that have 1,500 employees. They can get down to 1,000 employees with using AI,” he said.

READ MORE: Healthcare Compliance: Due Diligence Checklist

This reduction is not about diminishing the human element but rather reallocating it. By automating routine and repetitive tasks, AI allows healthcare professionals to focus their expertise on more complex and nuanced cases.

This shift is not just a matter of numbers; it represents a fundamental change in how healthcare operations are managed. Becker elaborated on the challenges faced in staffing these roles.

“A lot of those jobs are relatively lower-wage jobs where the turnover was tremendous,” he added.

This also speaks to the importance of AI in creating a more stable and focused workforce.

READ MORE: How To Extract Data from ERP Systems

Transformation of Medical Education

Becker also said that the medical education system is in dire need of an update.

“Medical school is still designed pre-internet,” he said. “A specialist isn’t out of school until they’re in their early thirties.”

This not only prolongs the training period but also imposes significant financial and mental burdens on aspiring medical professionals.

READ MORE: Professional Healthcare Recruiters: Specialized Human Capital Resources

“You’ve got this horribly inefficient medical school program and residency training program,” he added.

By leveraging artificial intelligence for educational purposes, the learning process can be significantly streamlined, reducing both time and cost for students.

Augmentation of Medical Professional Roles

There are many use cases for existing medical professionals as well. Mooney offered one example.

“They’re going to have these amazing copilots that will help do all those kind of brain sequences,” he said.

READ MORE: AI Data Analytics: Business Intelligence Tools

Mooney views AI as a tool to assist, rather than replace, human expertise. AI’s ability to process vast amounts of data and identify patterns can significantly enhance the diagnostic process, allowing medical professionals to focus on critical decision-making and patient care.

“I don’t think you could ever turn them over to the robots, at least in our visible future,” Mooney added.

The integration of AI promises to elevate the quality of healthcare, making it more precise, personalized and effective.

While the potential of AI in healthcare is immense, challenges such as resistance to change and vested interests could impede its adoption. Its future prospects, however, are promising.

The integration of AI and machine learning in healthcare represents a significant shift toward more efficient, effective and personalized care.

The invite-only Business Builders’ Network is full of AI experts who work with healthcare businesses on a regular basis.

Connect with our research and operations team, and they’ll provide a short list of tailor-made resources within 24 hours.

Listen to all the episodes from the KSOB podcast.

Why Private Equity Invests in People for Growth

Human capital is a driving force for growth in private equity. A recent BluWave-hosted webinar delved into three leading trends in this service area:

  1. The rise in human capital investments
  2. The importance of specialized recruiters
  3. The value of interim executives

Here are some insights into these topics from from Head of Client Coverage Rena Frackt, Account Executive Evan Garoutte and Research and Operations Consultant Taylor Lee.

Human Capital Emphasis

The trend of investing in people for growth continues to gain traction.

READ MORE: Why Hire an Interim CFO

“Human capital activity has been steadily growing and reached an all-time high in Q3 of this year, accounting for 49 percent of all activity coming through the BluWave network,” Garoutte said. “It’s the number one trend in the industry.”

This reflects a 20 percent increase year-over-year, underscoring the importance of investing in talent for organizational growth and value creation.

Using Specialized Recruiters

Engaging specialized recruiters is crucial for efficiently filling both executive and non-executive positions, particularly during growth phases.

“They stay up to date on market trends, salary range and emerging skill sets, which is extremely valuable,” Frackt said. “The knowledge allows them to identify and attract top talent who possess the right qualifications and of course, and most important would be a cultural fit to the organization.”

READ MORE: Why Hire an Interim Chief Executive Officer

Value of Interim Executives

Interim executives, especially in pivotal roles like CFOs, CEOs and CHROs, provide stability and continuity during transition periods, crisis management and special projects.

“PE firms have found value in being able to try before they buy. And we’ve seen interims convert to full-time employees about a third of the time internally,” Lee said. “There’s just value in confirming that this person can positively see our portfolio companies in the right direction as well as confirm that they’re a culture fit.”

READ MORE: Why Hire an Interim CTO

The discussion underscored the critical role of human capital in driving growth, indicating the various strategies that private equity firms and their portfolio companies can employ.

BluWave’s invite-only network of human capital resources works with PE firms daily to fill needs related to human capital, as well as a wide array of other service areas.

Contact our research and operations team for your next project and they’ll provide a short list of exact-fit service providers within 24 hours.

Transformative Leader for Consumer Products Revitalization

Service Area: Human Capital – Executive Recruiting

Client Type: Small-Market PE Fund

Service Provider Type: Interim CEO

Industry: Consumer Products

The Need
Urgent Leadership Transition and Strategic Revitalization

A West Coast company, specializing in the design, manufacture and distribution of proprietary consumer products, found itself at a crossroads. With a diverse product portfolio distributed across multiple countries, the company sought a transformative leadership change to navigate operational and strategic challenges. The immediate requirement was an Interim CEO capable of steering the company through a phase of revitalization and setting the stage for a permanent CEO.

The Challenge
Navigating a Complex Transition with Precision and Care

The company faced a multifaceted challenge: managing a seamless leadership transition while optimizing operational efficiencies and product margins. The need for a leader who could meticulously balance top-line focus with bottom-line pragmatism was evident. The interim CEO would be tasked with orchestrating a turnaround, optimizing expenses and ensuring product margins were robust, setting a trajectory toward achieving a 20 percent EBITDA boost.

How BluWave Helped
Facilitating a Tailored Connection for Success

BluWave leveraged its extensive network to connect the PE fund with a short list of exact-fit interim CEOs. Each one was aligned with the company’s unique needs and industry nuances. The focus was on identifying a leader with a profound understanding of consumer products, operational optimization and strategic revitalization, coupled with a geographical alignment to the company’s headquarters.

The Result
A Strategic Pathway to Revitalization and Growth

Through BluWave’s precise connection, the company was chose a leader that resonated with its transformation objectives. The interim CEO, equipped with the requisite expertise and strategic foresight, was poised to guide the company through a period of transformative change, laying a solid foundation for sustainable growth and operational excellence in the consumer products domain.

Scott Estill of Lancor: Human Capital’s Evolving Role in Private Equity

Scott Estill recently joined the Karma School of Business podcast, sharing his insights into the dynamic world of private equity, with a focus on human capital.

In a captivating discussion with host Sean Mooney, Estill, a seasoned professional with a wealth of experience in executive search and private equity, discussed the transformative trends shaping the landscape of talent acquisition and management.

He emphasized the essence of human relationships, the mutual selection process in recruitment and the necessity of navigating technological changes with agility and adaptability.

Here are some pivotal insights from their conversation.

3 Takeaways from Scott

1. The Importance of Human Capital in Private Equity

Private equity’s approach to human capital has evolved, placing a stronger emphasis on the value of talent and human relationships in driving business success.

READ MORE: Hire an Interim CHRO

Estill articulated this evolution, emphasizing that the real value lies in the talent that propels the business forward.

“What matters more is what’s your right to win. It’s not necessarily about picking the right weighted average cost of capital or whatever it is for the inputs of the model and how much debt to put on a business. It’s the people,” Estill said.

Mooney also highlighted the industry’s shift toward a more human-centric approach.

“This whole idea of this openness to get a candidate to be wanting to be with you and saying, ‘Call anyone you want.’ That’s something that is relatively new in private equity, but incredibly important,” he added.

2. The Shift in Approach: From Assessment to Mutual Selection

The recruitment process in private equity is transforming into a mutual selection process where both parties assess each other.

“You do need to show the human side. That’s sort of why operating partners exist. And we do a ton of operating partner work because you need the EQ-IQ combination,” Estill said. “But I think painting with a wide brush, if PE firms can be more and more human about what it is to work with them and why they value that talent, it makes the talent of course feel good and it differentiates them from the competitors.”

Mooney said private equity has always been, appropriately, private in the way it operates. But that is shifting.

“One of the biggest evolutions that I think private equity is going through right now is the first word in private equity has always been private. It’s all about kind of holding your cards tight and trying to be this kind of vessel and it’ll drive great outcomes,” he said. “Increasingly, there’s things going on like brand formation. … There’s heads of human capital or HR that are not only looking outwardly but inwardly.”

3. Embracing Technological Changes

In an era marked by rapid technological advancements, the ability to adapt and evolve is crucial. Estill underscored the necessity of embracing these changes.

“The only thing that’s consistent is change. So it’s going to happen. And so as much as we think we’re so smart and we’re trying to get ahead of the curve, we’re already dinosaurs,” he said.

Mooney emphasized the transformative potential of technology in reshaping the industry.

“If you lean into it and embrace it, it can be a good thing,” he said. “But it’s scary in the meantime.”

Estill’s insights illuminate the evolving landscape of private equity, underscoring the pivotal role of human capital, the transformative nature of the recruitment process and the imperative of adaptability in the face of technological advancements.

The entire conversation with Mooney offers nuanced perspectives essential for navigating the complexities of private equity in a human-centric manner.

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

Andrew Greenberg of GVC: Specialization, AI, Adaptability in Investment Banking

Andrew Greenberg recently joined the Karma School of Business podcast, sharing his insights into the ever-evolving world of investment banking.

In a discussion with host Sean Mooney, Greenberg – Chief Executive Officer of Greenberg Variations Capital – delved deep into the transformative trends shaping the landscape of investment banking and capital markets. He articulated the significance of specialization, the revolutionary impact of artificial intelligence (AI) and the timeless essence of adaptability in navigating the industry’s dynamic terrains.

Here are some pivotal insights gleaned from their enriching dialogue.

3 Takeaways from Andrew

1. Specialization and Efficiency in Investment Banking

The investment baking industry has witnessed a paradigm shift, transitioning from a broader approach to a nuanced strategy emphasizing specialization and efficiency.

Greenberg discussed this evolution, highlighting the emergence of a new era where the focus is on being exceptional at fewer things to drive insightful outcomes.

“I think that directionally, the process of selling businesses will continue to evolve in the direction of applying expertise to prospective buyers, the company and the value proposition as opposed to the brute force of the marketing exercise,” Greenberg said.

Mooney agreed with Greenberg’s point on expertise.

“I think what you really appropriately pointed out is we’re in this new era and now it’s about specialization,” he said, “and it’s about being better at fewer things and really driving insights to drive outcomes.”

2. The Impact of Artificial Intelligence (AI)

Artificial intelligence stands at the forefront of this transformation, heralded as a monumental efficiency enhancer. Both Mooney and Greenberg agree on its pivotal role in propelling the market toward unprecedented levels of efficiency, aligning seamlessly with the principles of efficient market theory.

Artificial intelligence has become a big part of the discussion, and I think you and I agree that there’s both steak and sizzle there,” Greenberg said.

BluWave recently published a white paper discussing the crucial steps businesses must take before implementing new AI tools. Mooney believes it’s primed to be the world’s next revolutionary broad-access tool.

“With the advent of AI, this is going to be the greatest efficiency enhancer in my mind since the advent of the modern internet in 1995 with Netscape,” Mooney said. “I 100 percent agree that the world is going to be playing this game and it’s going to be, like anything else, harder and harder to find alpha. But it’s still going to be really good compared to most other things.”

3. The Importance of Adaptability

Navigating the dynamic realms of investment banking necessitates a spirit of adaptability and openness to diverse opportunities. Greenberg advocated for embracing various experiences and being open to different possibilities.

“As things cross your field of vision, have a disposition to try different things,” Greenberg said. “My advice for younger people would be where possible, try to say yes.

Mooney said he could relate to the power of adaptability.

“You think about the things that we do, they require a lot of time. It’s a lot of effort,” Mooney said. “One of the things that I’m always thinking about as I’ve gained a little bit of perspective is, how do I find little life hacks that are not only even just business, but just things that make my life a little easier?”

Greenberg’s insights underscore the pivotal role of specialization, the transformative potential of artificial intelligence and the enduring value of adaptability in navigating the industry’s multifaceted landscape.

The conversation with Mooney is a trove of wisdom, offering nuanced perspectives that are essential for navigating the complexities of investment banking and capital markets.

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

Cash Flow: Importance for Businesses, Portfolio Companies

Why might a good company fail? It’s often as simple as running out of cash.

That’s why it’s so important that business leaders not only understand what cash flow is but also keep a close eye on it.

BluWave CEO and founder Sean Mooney touched on this topic with Gabe Mesanza, partner at Huron Capital, on the Karma School of Business podcast.

Let’s take a closer look at what Mooney and Mesanza had to say about the importance of cash flow, and how private equity firms think about this crucial metric as it relates to their portfolio companies.

A calculator and a stack of coins in a bluish tinted photo. In the background there are accounting papers with numbers on them. In the foreground there's a bar chart with a line graph.

READ MORE: Why Hire an Interim CFO?

What is Cash Flow?

Cash flow is the net amount of cash coming into and going out of a business. It has a substantial impact on liquidity.

Without enough cash on hand, a company won’t be able to pay its expenses, ultimately forcing it to shut down.

A Fundamental Beacon for Businesses

When times get tough – especially because of the economy – many businesses act more conservatively. Private equity firms, however, often take advantage of these challenging situations by boosting value creation.

Mesanza said that starts with focusing on fundamentals.

“The basic is focus on cash. Just understand your cash position because that is really the lifeblood of the company,” he said. “If you’re struggling with cash, then you really can’t think about much else, very honestly. That is all-consuming, and it leads you to short-term decisions that are often counter to the long-term goals of the company. That to me is first, second, third. In a crisis, focus on cash.”

READ MORE: Interim CFO for a Financial Crisis

Why Cash Flow is Overlooked and Misunderstood

When a business is performing well, executives are even less likely to focus on cash flow. This, Mesanza said, is a mistake.

“We’ve seen a couple of examples of that here recently. Having worked for large companies, even sometimes we ran into really good executives that ran business units and you ask the question of cash, they never even thought about it,” he shared. “Cash was just something that was there and it was swept at the end of the day. When you needed to do a project, you went and asked for the money and it showed up. The idea of cash is not something that is natural for a lot of people, and it’s surprising the number of people who mistake EBITDA for cash.”

Cash Flow Forecasting and Management

Mooney, who had about 20 years of private equity experience before starting BluWave, said that neglecting cash flow can be a fatal mistake.

“I learned very early on good companies don’t necessarily go out of business because they’re good or bad, they go out of business because they run out of cash,” he said.

READ MORE: Sales Process Workflow: Stages, Examples for Businesses

Instead, he suggested, business leaders should forecast cash flow on a 13-week basis – equivalent to a quarter – week-to-week and monitor progress. Mesanza agreed with this approach.

“One of the first things we do is a 13-week cash flow. It’s interesting for founders, a lot of their personal finances are intertwined with the company, a lot of their personal expenses flow through the company, whether it’s a car or whatever the case is,” Mesanza said. “The moment that you start adding debt to a company and you have quarterly debt payments that you have to make, boy, that really becomes some different level of conversation.”

How Private Equity Looks at Cash Flow

Private equity firms perform substantial due diligence before acquiring a new business. When they do move forward with a purchase, it’s because they see significant growth potential.

READ MORE: What Makes a Commercial Due Diligence Firm ‘Specialized’?

“The change to being owned by private equity is that we really only want to put in equity or cash into a company to grow it, to build it, to buy other things,” Mesanza said. “We don’t want to put cash in to run the operations.”

These aren’t just lessons for PE firms and their portcos, though. Any business can reap the benefits of healthy accounting practices coupled with a growth mindset.

The Business Builders’ Network is full of third-party service providers who have helped businesses across various industries accelerate their value creation.

Contact the BluWave research and operations team to set up your initial scoping call. They’ll match you with an exact-fit resource from the invite-only network within a single business day.

Diversifying Talent in a Digital-First Consumer Products Startup

Service Area: Human Capital – Specialized Recruiters

Client Type: Lower-Middle Market Firm

Service Provider Type: Non-Executive Recruiting Firm

Industry: Consumer Products

The Need
Diverse Talent for a Dynamic Startup

A consumer products startup, operating as a portfolio company of a lower-middle market PE firm, was on a mission to enhance its team with diverse talents. Roles in digital marketing, design/creative, product development and people/operations were open, requiring a recruiting firm that understood the startup’s digital-first, data-driven and agile nature.

The Challenge
Complex Landscape of Multi-Role Hiring

The company didn’t have a dedicated talent partner, making the hiring process, especially for multiple roles, daunting. The urgency to hire candidates who could seamlessly blend into the startup’s fast-paced environment and contribute to its growth trajectory was paramount. Traditional recruiting firms, primarily aligned with CPG companies, lacked the finesse to meet the unique demands of a rapidly evolving digital landscape.

How BluWave Helped
Connecting with Specialized Recruiting Expertise

BluWave acted swiftly, utilizing its rich network to connect the PE firm with a specialized recruiting firm. This firm was not only adept at navigating the consumer products industry but also came with a robust expertise in fostering talent for digital-forward, high-growth environments. BluWave’s connection ensured that the recruiting firm could offer a tailored, retained search approach, aligning with the portfolio company’s nuanced needs.

The Result
Streamlined Path to Talent Acquisition

Through BluWave’s strategic connection, the portfolio company worked with a recruiting ally that understood its unique challenges and needs. The specialized recruiting firm’s ability to navigate the digital realm, coupled with its flexibility and adaptability, empowered the portfolio company to move forward confidently in its talent acquisition journey, ensuring that each role was filled with candidates who could thrive and drive innovation in a dynamic startup environment.

Revolutionizing Sales Strategies for a Robust Roofing Roll-Up

Industry: Construction and Engineering

Service Area: Human Capital

Client Type: Upper-Middle Market PE Firm

Service Provider Type: Non-Executive Recruiting Firm for VP of Sales

The Need
Unleashing Sales Potential in a Diverse Roofing Business

A progressive roofing roll-up, specializing in both residential and commercial sectors, sought to enhance its sales strategies and expand its footprint. The company aimed to recruit a VP of Sales, a unique role envisioned as a dynamic force to lead a national sales team, streamline sales strategies, and drive significant business growth of at least 4X. The ideal candidate would be a road warrior, leading from the front, adept at managing diverse sales strategies ranging from door-to-door sales to sophisticated network building with insurance agents.

The Challenge
Finding the Unicorn: A Versatile and Visionary VP of Sales

The role demanded a candidate with a rare blend of attributes – a natural-born salesperson, a strategic leader and a dynamic team builder. The VP of Sales would not only lead and mentor a vast team of more than 150 direct sellers and 15 managers but also be instrumental in sculpting multiple go-to-market strategies, enhancing formal training processes and spearheading expansion through acquisitions and geographical diversifications.

How BluWave Helped
Crafting a Tailored Search for a Multifaceted Role

BluWave connected the PE firm with a specialized recruiter group focused on identifying candidates with a profound understanding of direct-field services and a distributed workforce model. The approach was tailored to ensure that the candidates not only resonated with the unique sales strategies of the roofing roll-up but also brought a vision to revolutionize the sales paradigms, driving unprecedented growth.

The Result
A Strategic Visionary Poised to Propel Sales and Growth

The private equity firm chose from a short list of candidates a VP of Sales who embodied the visionary leadership and dynamic sales acumen for which the roofing roll-up aspired. The new VP of Sales is poised to be a transformative force, ready to unleash innovative sales strategies, mentor and lead a vast team and drive the company toward remarkable growth and success in the roofing industry.

Versatile Controller for an Innovative Legal Tech SaaS Business

Industry: Technology – Software – Legal

Service Area: Human Capital

Client Type: PE Firm

Service Provider Type: Non-Executive Recruiting Firm

The Need
Building Robust Financial Infrastructure for Growth

A burgeoning U.S.-based legal tech SaaS business, backed by a PE firm, was on a mission to revolutionize legal processes through automation and analytical insights. With a promising trajectory, the company sought to bolster its financial infrastructure to support and sustain its rapid growth. The search was on for a versatile controller, someone who could not only manage the day-to-day financial operations but also strategize and steer the company toward financial optimization.

The Challenge
Industry, Role Nuances

The ideal candidate would be someone adept at wearing multiple hats, capable of handling everything from accounts payable and receivable to strategic financial planning. Given the company’s innovative focus on legal tech, the controller would also need to navigate conversations with various stakeholders, including founders who might not be deeply versed in financial reporting, and investors and board members requiring sophisticated financial insights. The geographical location and the specific industry experience of the candidates were also crucial factors.

How BluWave Helped
Tailored Approach to Hiring the Right Fit

BluWave connected the private equity firm with a specialized non-executive recruiting firm with a robust background in controller roles, a deep understanding of early-stage business dynamics and a geographical alignment with the West Coast. The approach was tailored to ensure that the candidates the search firm presented not only met the technical requirements but also resonated with the unique culture and vision of the portfolio company.

The Result
Strategic Addition to Foster Financial Excellence

BluWave’s strategic approach and network enabled the legal tech SaaS company to identify a controller who perfectly aligned with their needs and vision. The new hire brought a blend of operational expertise and strategic acumen, ready to build a robust financial infrastructure that would support the company’s innovative trajectory and growth aspirations.

“My feedback is very positive.”

-Managing director of PE firm