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.
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.”
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.
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.
The manufacturing sector, historically a cornerstone of economic prosperity, is going through a transformation. As we navigate the intricacies of this evolution, data is our compass.
Industry professionals grapple with sourcing specialized talent, particularly on a geography-specific basis. They’re also navigating complex supply chain dynamics, which require both regional and global considerations, and are affected by disruptions and economic fluctuations.
There’s also a pressing need to balance operational challenges with long-term strategic growth, all while integrating technological advancements and ensuring optimal production processes.
Since 2021, BluWave has seen an increase from 61.3 percent of manufacturing activity in value creation (versus due diligence) to 78.6 percent – the highest it’s been since 2017.
Let’s dive into some of the trends driving this and other changes.
The manufacturing landscape is shifting, and with it, the demand for specialized talent. A staggering 74 percent of manufacturers cite “attracting and retaining a quality workforce” as a top challenge, according to the National Association of Manufacturers. As the manufacturing sector becomes more specialized, the demand for niche talent has skyrocketed.
Human capital activity is at an all-time high within the manufacturing activity index, accounting for 45.5 percent of all industry projects in 2023. That’s a more-than 500 percent increase since 2017, due to use cases like interim executive searches and specialized recruiters.
Beyond the numbers, there’s a qualitative challenge, too. It’s not just about filling positions but hiring visionaries who can lead in an era of rapid change while balancing granular details with a broader strategic perspective.
In the face of these challenges, manufacturers are seeking partnerships with specialized firms, emphasizing the importance of regional expertise and industry-specific knowledge. The goal is to secure leaders who can drive innovation and navigate the complexities of the modern manufacturing world.
Supply chain disruptions have become the bane of the manufacturing sector, with 45 percent of professionals identifying it as a top challenge, per NAM. The intricate dance of sourcing raw materials, managing inventory and ensuring timely deliveries has become even more complex.
Supply chain management is one of the top use cases BluWave sees within manufacturing operations, with make up more than 18 percent of industry activity.
Effective supply chain management is no longer just about logistics; it’s about ensuring a seamless flow of materials, information and services, all while mitigating risks.
Supply chains have evolved into intricate global networks. Data indicates that disruptions, whether due to geopolitical tensions or unforeseen global events, can have cascading effects. Manufacturers are now tasked with not just managing but optimizing these complex systems, ensuring resilience and adaptability.
The emphasis is shifting from reactive measures to proactive strategies. By leveraging data analytics and predictive modeling, manufacturers can anticipate disruptions, adjust in real-time and ensure that the supply chain remains a strength rather than a vulnerability.
In a world where 56 percent of manufacturers (per NAM) are wary of a “weaker domestic economy,” economic agility is paramount. Manufacturers must be adept at navigating economic headwinds while capitalizing on opportunities. The insights from BluWave’s client interactions reveal concerns ranging from revenue challenges to market dynamics.
That makes agility paramount. With fluctuating markets and the ever-present specter of global events, manufacturers are in a constant state of adaptation.
By understanding market trends and leveraging data-driven insights, manufacturers can identify growth areas, optimize production and ensure they remain at the forefront of industry innovation.
The future is digital. A significant 43 percent of manufacturers planned to ramp up their technology spending in 2023, according to Alithya. From optimizing operations to strategic decision-making, technology is reshaping the manufacturing landscape. The emphasis on IT strategy and diligence in client interactions underscores the sector’s tech-driven trajectory. Manufacturers that fail to embrace this digital shift risk being left behind.
Among the top technology-related manufacturing use cases we’re seeing are system selection & implementation, and IT strategy and diligence.
Successful digital transformation, however, requires a holistic approach. It’s not just about technology but about aligning organizational goals, processes and culture with these digital initiatives. Manufacturers must ensure that their teams are equipped with the skills and knowledge to leverage these tools effectively, driving both efficiency and innovation.
Growth remains a top priority for manufacturers, but it’s a goal fraught with challenges. Data highlights the importance of strategic expansion, ensuring that growth is sustainable and aligned with broader market trends. In an era of uncertainty, it’s not just about growing but growing smartly.
Strategic partnerships play a crucial role in this growth narrative. By collaborating with experts, whether in technology, supply chain management, or market research, manufacturers can tap into specialized knowledge, ensuring their growth strategies are both data-driven and future-focused.
The manufacturing sector is at a crossroads, shaped by technological innovations, economic challenges, and global trends. But with challenges come opportunities. By leveraging data-driven insights and forging strategic partnerships, manufacturers can navigate this complex landscape, driving growth and innovation.
For a deeper exploration of how data-driven insights can shape your manufacturing journey, reach out to our team.
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.
“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.”
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.
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.
Strategic leadership forms the crux of organizational development and success. Just as the driving force of a car is its engine, so too is a high-performing board the engine of an organization, guiding strategic decisions and growth.
The assembly of a board requires careful selection of individuals, each possessing diverse expertise and perspectives that complement one another, fostering a rich ecosystem of leadership. This is where the concept of board recruitment becomes essential.
“Bringing on a board member who comes from that industry and can bring in-specific experience is a value add to any organization,” says Scott Bellinger, BluWave’s co-head of research and operations. “They can work closer to the management team and give outside insight of someone who’s been there and done that previously.”
It’s a process that goes beyond filling seats. It’s about attracting the top talent that can steer your business. For organizations looking for professional support in this crucial process, BluWave is ready to connect you with industry-specific resources that can guide your process with expertise and precision.
The journey toward effective board recruitment begins with understanding your unique needs. An assessment of the specific gaps in your current board composition and identification of skill requirements helps direct the recruitment process.
By aligning the desired attributes and expertise of potential board members with the organization’s strategic goals and challenges, you can ensure the recruited individuals will provide the most value.
Job Description
When beginning your board recruitment journey, a comprehensive job description serves as your map. By clearly outlining the board’s purpose, responsibilities and expectations, you set the course for attracting qualified board candidates.
A well-crafted job description, complete with the organization’s mission, board member roles, committee involvement and time commitment requirements, helps filter in individuals who align with your needs. To maximize impact, use concise language, focus on essential qualifications and illuminate your organization’s unique value proposition.
Benefits, Responsibilities and Skills
The board position comes with a wealth of benefits, including opportunities for personal and professional growth, networking and the privilege to make a significant impact on an organization. These benefits should be presented upfront to attract motivated individuals.
Board members shoulder several responsibilities, such as fiduciary duty, strategic planning, risk management and providing guidance to the executive team. Ensuring these duties align with your organization’s needs and strategic direction helps attract the right talent.
“They can be a great outside partner to the CEO – and it’s a portco, the PE firm – to ensure everyone is growing in the same direction and on the same page,” Bellinger adds.
Term and General Duties
Board member terms typically have a defined duration, and adopting staggered terms brings a mix of continuity and fresh perspectives into the proceedings. General duties could span from regular attendance at board meetings and active participation in committees to fulfilling fiduciary responsibilities. Clear articulation of these expectations can help potential members better understand their role.
Time, Legal and Financial Commitments
Time commitments for board members can range from regular board and committee meetings to additional engagement requirements. Alongside time, potential board members should be aware of any legal or financial obligations, such as adherence to regulatory compliance, potential liability issues and the expectation of making personal financial contributions or securing sponsorships.
Sourcing potential board candidates requires a multifaceted approach. Utilizing board posting programs and matching platforms, such as LinkedIn and Executive Search Firms, can offer access to a pool of qualified board candidates. Local Chambers of Commerce can also serve as valuable resources for finding candidates.
Oftentimes, though, you can save time and resources by connecting with a service provider who already knows exactly who you need and where to find them. The Business Builders’ Network from BluWave is full of exact-fit third parties who know how to do just that.
Word-of-Mouth and Referrals
Existing networks and relationships form a treasure trove of potential board candidates. From board members of other organizations and industry leaders to professional associations and community influencers, your network contacts can be a rich source of referrals. Clearly articulating your organization’s mission and the specific qualifications you seek in potential board candidates can help garner more suitable referrals.
Publicizing Within Network and Local Community
Promoting board opportunities within your network and local community allows you to target individuals already familiar with your organization or industry. Email newsletters, social media platforms, industry events and community-based publications can be effective channels for publicizing these opportunities. A compelling announcement combined with engaging storytelling can pique interest and attract potential board members.
External Promotion
Expanding your search beyond your immediate networks through external promotion can attract diverse candidates. Digital platforms and industry-specific networks can reach individuals with the desired expertise who might not be in your immediate circle. In addition to LinkedIn, Twitter and Facebook can be effective platforms.
Choosing the right candidate requires a structured process. An efficient application process, including resume, cover letter and reference submission, can facilitate the evaluation of potential board candidates. Initial screenings through phone or video interviews can help narrow the candidate pool. Utilizing behavioral-based interviewing techniques and strategic questions can further help assess the qualifications, values, commitment and potential contributions of board candidates.
Short-listing and Final Selection
The final stage of board recruitment involves short-listing and selecting the ideal candidates. Reviewing candidates based on predefined criteria and qualifications ensures an objective selection process. Thoughtful deliberation among board members, consensus-building, conducting reference checks and considering overall board dynamics can further aid in the selection of the right candidate.
“The main thing is getting someone who’s willing to be an active board member and not just meet once a quarter, but actually help with some value creation plans throughout the period and stay engaged between quarterly meetings,” Bellinger says.
A successful board recruitment strategy is a meticulous process. It doesn’t have to be an uphill task, though. BluWave’s research and operations team can be your ally in this process, connecting you with exact-fit service providers. Connect with us here to start your journey to master board recruitment.
An outstanding board is invaluable to an organization. The power to make strategic decisions, the ability to drive innovation and the capacity to inspire stakeholder confidence is all within its power. Having helped countless businesses with this very process, BluWave has a unique perspective into the fundamentals of the board recruitment process and the best practices that make it efficient and effective.
Working with one of the expert third-party resources in the Business Builders’ Network can save you time and money while ensuring that you make the right selection for your company.
Let’s take a deeper look at the details that go into this critical decision.
Understanding the Board Member Recruitment Process
Board member recruitment goes beyond the confines of structured interviews – it is a crucial facet of organizational governance. A well-executed process determines the structure of leadership, influencing decision-making and strategic oversight.
“We’re starting to see some PE firms look for those board members during due diligence to help with some of those diligence opportunities as senior advisors then convert post-close to board members,” says Scott Bellinger, BluWave’s co-head of research and operations.
Industry-specific third parties not only know how to run the process for your business, they’re also connected with the most qualified candidates for your specific situation. Access to these resources can save businesses from the headache of sifting through unknown or unproven options.
First, you must identify the qualifications, skills and diversity that board members need to possess. These attributes should be aligned with the objectives of the organization, facilitating its growth trajectory.
Developing a Comprehensive Recruitment Strategy
A clear blueprint and timeline form the foundations of a robust recruitment strategy. Tapping into various channels – from professional organizations to networks and referrals – can greatly enhance your reach to potential board members.
Navigating these channels can be intricate, though, highlighting the need for expert third-party resources to guide the process.
Implementing an Effective Screening and Selection Process
The backbone of successful board recruitment is a comprehensive screening and evaluation process. The stages – ranging from interviews, application reviews, reference checks, background investigations, to skills assessments and board observations – require careful execution. Thorough due diligence, particularly during reference checks and interviews, should never be rushed or downplayed.
Utilizing a Board Recruitment Matrix
A board recruitment matrix can be a game-changer. This visual tool evaluates the current composition of the board, unveiling gaps that need to be addressed. The matrix ensures that new board members are appointed based on the required skills, expertise and diversity, fostering a team that’s well-equipped to navigate organizational challenges and stimulate success.
“Someone who has scaled a business in the same space at a larger size company,” Bellinger says. “Someone who knows what best-in-class looks like in this industry.”
BluWave is prepared to connect you with an exact-fit service provider, equipped to streamline and optimize your board recruitment process.
When you’re ready to elevate your board recruitment process, get in touch with us. Our research and operations team will scope your needs and provide best-fit candidates for you to evaluate within a single business day.
Customer-centricity is a business imperative, which makes understanding the voice of customer (VoC) critical to success. VoC insights provide a deep understanding of customer needs, preferences and pain points, guiding the strategic direction of a business.
The value of VoC, however, isn’t merely in its collection, but in the ability to quantify it using the right metrics, KPIs and analytics. By focusing on the metrics below, companies can track progress, identify trends and make data-driven decisions.
Not employing these metrics effectively could lead to misguided strategies and missed opportunities, underlining the need for expert advice on this critical subject.
Third-party resources, such as those BluWave connects you with, offer businesses the expertise to measure, analyze and make strategic use of VoC data. Having access to such proficiency could mean the difference between having a wealth of customer data and leveraging it for business growth. Let’s explore the potential of VoC data.
Keenan Kolinsky, BluWave’s co-head of research and operations, says working with specialized third parties can uncover insights the company wouldn’t be able to on its own.
“Before determining your growth strategy or any commercial strategy, you should get targeted insights from your customers and potential customers,” he says.
Sometimes clients will have very specific questions they want included in the scope. Other times they will look to the third party to advise.
Net Promoter Score (NPS)
NPS serves as a barometer of customer loyalty and satisfaction. It is determined by asking customers a single question: “On a scale of 0-10, how likely are you to recommend our company/product/service to a friend or colleague?” NPS provides valuable insights into your customers’ overall perception of your brand and their willingness to endorse you to others.
Customer Satisfaction (CSAT)
CSAT is a key metric that measures customer satisfaction with a specific product or service or an overall experience with your company. Typically measured on a scale, CSAT helps businesses understand how well they meet or exceed customer expectations, guiding improvements in product or service offerings.
Customer Effort Score (CES)
CES gauges the ease of interaction with your company. It measures the effort a customer must exert to obtain a product or service, resolve an issue or get a query answered. Low CES indicates smooth interactions and processes, directly contributing to higher customer satisfaction and loyalty.
Customer Loyalty Index (CLI)
CLI is a composite metric that gauges multiple dimensions of loyalty, including repurchasing, upselling and recommendation likelihood. A high CLI indicates strong customer loyalty, suggesting repeat business and customer advocacy.
Customer Lifetime Value (CLV)
CLV predicts the net profit associated with the entire future relationship with a customer. It helps businesses allocate resources efficiently for customer retention and acquisition strategies.
While business may be able to answer some of these questions on their own, Kolinsky says getting an outside perspective can be invaluable.
“Sometimes clients will have very specific questions they want included in the scope. Other times they will look to the third party to advise,” he says. “One of the insights they’re looking to get is buying drivers. What influences that customer to purchase that service or product?”
With a strong foundation in place, businesses can progress to more advanced VoC metrics that delve deeper into customer sentiment and behavior.
Learning Opportunities: Improving Products Based on Feedback
This metric identifies specific areas where your product or service could improve based on customer feedback. By proactively spotting and addressing these opportunities, you enhance your offerings and customer satisfaction.
Repurchase Ratio: Evaluating Customer Retention
The Repurchase Ratio measures the percentage of customers who have made repeat purchases. This metric is critical for assessing customer loyalty and informing retention strategies.
“Would You Miss Us?” (WYMU): Assessing Customer Dependency
WYMU assesses the extent of customer dependency on your products or services. High scores indicate significant customer reliance, which is indicative of a strong customer-business relationship and often results in brand loyalty and advocacy.
Accumulating VoC metrics is just the beginning; integrating these insights into your business strategy is where the real value lies. A tool that proves vital in this integration process is the Customer Journey Map, a visual representation of your customers’ experiences across all touchpoints. A well-constructed journey map can guide you on where to collect VoC data, adding to your voice of customer strategy.
Amplifying Results with Voice of Customer Analytics
VoC metrics and KPIs provide vast amounts of data, but it is the role of VoC analytics to interpret this data and glean actionable insights. Analytics facilitate the understanding of complex customer behaviors and sentiments, allowing businesses to make strategic decisions that drive customer satisfaction and business growth.
Companies often find interpreting and actioning VoC data a complex task, calling for specialist expertise. BluWave can connect you with an exact-fit service provider to navigate this complexity and help you amplify your VoC strategy, based on proven voice of customer methodologies.
Focusing on voice of customer metrics, KPIs and analytics is not just a best practice, but a necessity. They offer quantifiable measures to track progress, understand customer behavior and preferences and make strategic decisions that lead to enhanced customer satisfaction and business growth.
Looking to strengthen your VoC strategy with expert third-party resources? Get in touch with BluWave today. Our dedicated research and operations team will connect you with an exact-fit service provider to aid your journey to customer-centric growth.
In today’s competitive market landscape, understanding your customers’ perceptions and needs is paramount. This is where an effective voice of customer (VoC) strategy comes into play, allowing businesses to capture and analyze customer feedback for informed decision-making.
But without a strategic approach based on proven voice of customer best practices, deciphering customer pain points and optimizing your business operations can be challenging.
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This guide will take you through five essential steps to building and implementing a successful VoC strategy.
An effective VoC strategy begins by cultivating a customer-centric culture within your organization. This involves adopting a mindset where customer needs and feedback are the driving force behind every decision. From the C-suite to the front-line employees, every team member should understand the value of the customer’s voice and its impact on business success.
The integration of a VoC strategy extends across all departments, with each having a unique role and benefiting differently. For instance, the marketing department might prioritize understanding customer preferences for promotional channels, while the product development team might focus on feedback about product usability.
Building a Robust VoC Data Collection Framework
Your VoC strategy is only as good as the data you collect. Diverse methods of data collection provide a multifaceted view of customer preferences, expectations and pain points. As you adopt different VoC methodologies, you’ll gain a more comprehensive understanding of the customer journey.
Select feedback channels that align with your customer’s preferences and your business sneeds. Whether it’s through direct interviews, surveys, social media or customer support interactions, diversifying your feedback channels is crucial. Continually assess the strengths and weaknesses of your current channels to fine-tune your data collection strategy.
Collecting VoC data is just the beginning. The power of your VoC strategy lies in transforming this raw data into actionable insights. Analytical tools are indispensable for interpreting the data and identifying patterns that signify customer sentiment, preferences and pain points.
For instance, you may notice a recurring theme of customers struggling with a particular feature of your product. Grouping similar feedback points helps you identify and prioritize areas for improvement. By mapping these themes against customer personas and journey stages, you can gain a deeper understanding of specific customer experiences and expectations.
Prioritizing and Implementing VoC-Driven Initiatives
Having extracted insights from your VoC data, the next step involves implementing VoC-driven initiatives. Prioritization of these initiatives depends on several factors, including the feasibility of implementation, expected impact and alignment with business objectives.
A VoC roadmap can help you systematically execute prioritized initiatives over time. Transparent communication is key during this phase, ensuring everyone understands the changes and is on board with the new initiatives. Key performance indicators (KPIs) should be set to measure the effectiveness of these initiatives, providing tangible proof of your VoC strategy’s success.
Enhancing Customer Engagement and VoC Program Evolution
A successful VoC strategy doesn’t stop at implementation—it’s an ongoing process that evolves with your customers’ needs and expectations. Keep your customers informed about the changes you’re making based on their feedback. This not only shows your commitment to their satisfaction but also encourages their continued participation in your VoC program.
Regular reviews and updates to your VoC program are essential to stay in sync with changing customer needs. Your VoC strategy should be flexible, allowing for continuous improvement and adaptation.
Building and implementing an effective VoC strategy may seem like a daunting task, but the rewards of increased customer satisfaction and business growth are worth the effort.
Working with a trusted third-party expert can help ease this process, and BluWave is here to connect you with the perfect resource.
“There are providers with networks of contacts across different industries,” says Keenan Kolinsky, BluWave co-head of research and operations. “Not only is it interesting to survey existing customers, but also potential customers to gain their insights and perspectives, and that’s really where these third parties can add value, is helping businesses get insights from potential customers – not just the ones they already have.”
Whether you need help refining your data collection methods, analyzing VoC data or implementing VoC-driven initiatives, our research and operations team is ready to assist. Contact us today and let us guide you to success in your VoC journey.
Customers shape the success of your business. Their feedback, preferences and expectations guide your strategies, refine your services and bolster your bottom line.
Enter the world of the Voice of Customer (VoC). This indispensable tool – often part of a specialized commercial due diligence project – empowers you to tap into what your customers desire and harness their insights for growth.
VoC is a research method that captures customers’ expectations, preferences and aversions. By leveraging this approach, you can cultivate a customer-centric culture that not only boosts satisfaction but also propels your business to new heights.
VoC methodologies are a collection of techniques to gather valuable customer insights. They pinpoint customer needs, expose pain points and reveal opportunities to improve.
BluWave co-head of research and operations Keenan Kolinsky says using an industry-specific third-party can make this process more efficient.
“The study can be much more targeted if there’s a specific customer segment they’re interested in. Additionally, when a VoC is part of a due diligence activity, the acquisition target could introduce the fund to a targeted and select group of customers to get their insight specifically,” he says. “They’re much more targeted insights from the key accounts that can make or break the business.”
Nothing beats a conversation when it comes to understanding customers. Interviews unveil the “why” behind behaviors, offering rich qualitative data. On the other hand, surveys, whether online, email or SMS, yield quantitative data, transforming feedback into measurable insights.
By pairing these methodologies, you gain a holistic understanding of preferences and experiences. But managing and interpreting both qualitative and quantitative data can be complex. Collaborating with expert third-party services can alleviate this burden, allowing you to focus on leveraging the insights.
Customers often voice their opinions on social networks like Facebook, Twitter, Reddit, Instagram, TikTok and more. Monitoring these platforms uncovers real-time feedback and sentiments. Social listening tools identify trends, track brand mentions and facilitate customer engagement. This goldmine of unfiltered opinions can equip you to refine your products and services.
Doing this on a regular basis, though, can become unwieldy. Experienced third parties who do this on a regular basis can save you time and help you get capture core customer sentiments.
Focus Groups
A small group of customers, a structured discussion and a skilled moderator – that’s a focus group in a nutshell. It’s enables customers to freely express their thoughts.
This format often reveals hidden perceptions and enables you to understand how group dynamics influence feedback. Nevertheless, coordinating and moderating focus groups can be time-consuming and requires expertise for accurate interpretation. Here, experienced third-party firms can step in, streamlining the process and ensuring valuable takeaways.
When customers reach out for support, they reveal their needs and frustrations. Scrutinizing inquiries, complaints and feedback from support channels can reveal recurring issues and areas for improvement.
Website Behavior Analysis
How do customers interact with your website? Analytics tools – like Google Analytics 4 – offer the answer. By tracking page views, clicks and navigation paths, you gain behavioral insights.
Heatmaps, user recordings and conversion funnels also unveil usability issues and help streamline the customer journey. But analyzing such granular data and deriving meaningful insights isn’t everyone’s cup of tea. It demands deep technical expertise and significant time investment. A third-party solution with a knack for analytics can be the key to unlocking these valuable insights, sparing you from getting lost in the complexity of data.
Customer feedback thrives on online review platforms. By monitoring them, you can understand customer sentiments and address concerns. Engaging with customers on review platforms also shows your commitment to their satisfaction.
Feedback Forms
Feedback forms on your website or app offer a structured way to gather feedback. Well-designed, user-friendly forms capture specific information, enabling customers to express their thoughts in detail.
Net Promoter Score® (NPS®)
How likely are your customers to recommend your business? The Net Promoter Score® (NPS®) offers a clear answer. NPS® surveys categorize customers into promoters, passives and detractors. Analyzing this data uncovers the reasons behind customer ratings and helps craft strategies to boost loyalty.
Gathering data is only the first step. VoC methodologies call for structuring and organizing data to facilitate effective analysis. Tools and techniques for data analysis spotlight key insights and patterns, making sense of what you collect.
Insight Generation
Converting data into actionable insights is the heart of VoC. Analysis uncovers customer preferences, pain points and emerging trends. Triangulating from different methodologies offers a comprehensive understanding of your customers.
Insights are the foundation for action. Prioritize improvements based on both customer input and business goals. For instance, if feedback consistently points to slow website load times, prioritize website optimization. Effective implementation requires cross-functional collaboration to effect change.
Monitoring and Continuous Improvement
The Voice of Customer process is not static, but rather a dynamic, ongoing endeavor. It evolves in sync with market trends and customer needs. Establishing continuous feedback loops, gauging progress and refining strategies based on the evolving customer landscape is essential.
“You could also incorporate price sensitivity into a VoC to help a company determine if there’s room to increase prices,” Kolinsky says. “Basically what the customer thinks about how the product or service is priced.”
This is where BluWave steps in, bridging the gap between understanding your customers and implementing that understanding into actionable strategies. Our research and operations team works diligently to connect you with industry-specific, vetted service providers who specialize in Voice of Customer methodologies. They assist you in maintaining the momentum of your VoC efforts, from the initial data collection to the final stages of strategy adaptation.
Through our extensive network, we’ve got you covered whether you are a private equity firm, a portfolio company, or a private or public company. Our exact-fit resources are at your disposal to ensure you remain customer-centric, adaptable and progressive in the ever-changing market landscape. We understand that your goal isn’t just to listen to your customers but to hear them, comprehend them and ultimately grow with them.
Mergers and acquisitions are a key strategy for private equity firms. The process of integrating two companies, however, can be complex and difficult in practice.
That’s why a detailed, well-thought plan is key to success.
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“Middle-market and lower-middle market businesses don’t have the surplus of people that publicly traded businesses would,” BluWave co-head of research and operations Scott Bellinger says. “Bringing in a BluWave resource will let those resources focus on their day-to-day jobs while outsourcing the integration to an expert who can do it on a much quicker and efficient timeline than trying to do it internally.”
We’re going to walk through the various steps and best practices at a high level.
The first step in any M&A process is to identify potential targets that align with investment strategies and offer growth prospects.
This involves conducting market research, evaluating competitors and considering companies that fit specific criteria. It’s important to consider factors such as the target company’s financial performance, product offerings and market position.
Conducting Due Diligence
Once potential targets have been identified, it’s time to conduct a thorough due diligence process. This is done to assess things like the target’s financial and operational health, legal and regulatory compliance, and management and personnel.
Bellinger says this essentially comes down to a “synergy assessment” of the buyer and the target.
This is critical to thoroughly understanding the organization before it’s acquired. Reviewing financial statements, interviewing key personnel and evaluating systems and processes are integral parts to most diligence exercises.
After due diligence is finished and a company has decided to move forward, it’s time for both sides to negotiate.
The better the communication between the buyer and the acquisition target, the more likely both will be satisfied with the outcome. That being said, they should carefully consider the terms of the deal before signing to ensure it makes sense for their business.
Integrating the Acquired Company
The final step of any M&A process is integrating the acquired company into the portfolio.
Bellinger says this typically takes between 90-120 days and is focused on integrating various integration streams.
This often involves combining operations, systems and processes. The more detailed and clear the integration plan, the better.
Typical key factors include cultural differences, employee morale and operational efficiency.
To the degree that it’s legally permissible, the firm should keep employees, customers and other stakeholders informed throughout the process. Sometimes no news at all can spook key stakeholders, even if everything’s going according to plan.
It may make sense to hire an interim CFO who’s experienced in these situations and can hit the ground running.
Merger planning and integration is a specialty of the service providers in the exclusive BluWave-vetted network.
“Engaging these firms pre-close can help you understand and validate cost synergies after the acquisition is complete and integrated,” Bellinger says.
Each resource goes through a rigorous evaluation before its admitted into the network, and again before we connect them with you. Instead of spending days or weeks searching for the right resources to plan your merger, we’ll provide the two or three “best fits” within a single business day.
Business intelligence and analytics is a key facet of modern-day business building.
“BI gives you the ability to dig deeper in to all the operations of your business to track KPIs and other metrics, which can then help you steer your business,” says Houston Slatton, BluWave’s head of technology.
Leaders at private equity firms, portfolio companies and private and public companies use data to answer questions about their business. This could give them a better understanding of their customer base or product, for example.
“It’s using very large amounts of, and sometimes real-time data to paint a whole picture of your customers, your business and your products or services,” the founding partner at one of our expert service providers says. “The difference between business intelligence and analytics and maybe traditional financial analysis is the scale at which it happens.”
In the past, business leaders would get information from an old database and manual analyze it in a spreadsheet program. That very spreadsheet fundamentally limits the analysis, according to the data firm’s founding partner, Mike Datus.
“Once you enter the realm of business intelligence or analytics, or data science is sometimes used synonymously, you’re talking about a bigger, more comprehensive, more real-time picture,” Datus says.
One key way to maximize portfolio company performance is with private equity analytics. The right data helps a firm make better investment decisions while maximizing portfolio company performance.
The right information also helps with risk management, and eventually, increasing a portfolio company’s exit value.
Of course, non-PE firms can reap the same benefits to build their business. Slatton says this process starts with putting your data in a data warehouse and formatting it in a way that’s “analytics ready.”
“The next chunk is building or doing analysis on top of that data,” he adds. “Probably a lot of defining KPIs or metrics. All businesses are generally going to agree on revenue, but most of the operational metrics, there’s probably a little wiggle room around. But you can’t build a visualization with wiggle room.”
Precision, then, is key to actionable analytics. Once you have reliable, accurate data in place, it’s time to put it to work.
“You’re going to build some visualizations on top of that analysis so you can build some metrics over time and build some historical results and predict future results as well,” Slatton says.
By monitoring key performance indicators and market trends, organizations can identify weaknesses. The right data can help develop strategies to address these issues and strengthen a firm’s portco or a company’s operations.
“Most companies don’t have great insight into the actual operations of their business at the granular level that you can have now,” Slatton says. “It’s an investment to put in a full data stack and to build the visualization capabilities. But you can really unearth a lot of highly impactful insights about your business once you have access to the granular data sets.”
One of the key considerations in BI & analytics is the selection of data sources. As Slatton mentioned earlier, accuracy is imperative, along with up-to-date information that’s aligned with the firm’s overall strategy.
“One of the most important parts of BI is figuring out what the actual KPIs are that are going to be the real levers of the business and making sure to track those,” Slatton says.
Once the firm knows what it wants to monitor, it must decide how to securely collect and store that information.
Integrating new private equity analytics programs and tools must be done with existing systems in mind. These might include portfolio management software, investor reporting platforms, website analytics, payroll management and more.
Lastly, and most practically, the data must be accessible for the relevant parties. That means reports that are easy to analyze and share. That way, everyone from partners to C-suite executives to the most junior employee in the organization understands what’s driving the decisions that affect them.
Whether you’re the CTO at an independent company, an interim CFO at a portco, or any other business building role, we have expertly vetted analytics and insights resources on standby.
The BluWave-grade network of service providers have helped hundreds of companies like yours choose, implement and distribute data platforms that have a positive impact on their organization’s value.
“You want a group that can define the right, limited set of KPIs,” Slatton says. “The C-suite or leadership team should bring that to the table, but you want a group you’re going to be able to work with to define and refine the KPIs that you use to drive the business.”
Contact us to set up an initial scoping call, and we’ll connect you with two or three best-fit resources for your exact situation within a single business day.
*Privacy is important to us. While the source and company name have been changed, these are real quotations from a real service provider in the BluWave Business Builders’ Network.
One expert service provider from our network says his firm has seen an influx of diligence requests in this industry since the beginning of 2022, and it hasn’t slowed down since.
“There continues to be a lot of interest in the healthcare sector, whether it’s device manufacturers or contract manufacturers, and even services,” Don Jenkins* of M&A Healthcare Experts says. “Whether it’s tele-health-related services or just other technology platforms that can address healthcare service delivery.”
With so much money to spend on hand, Jenkins says that middle-market private equity is all over the map.
When he thinks about the last 50 projects they have done for private equity firms, he estimates they would span 20 different markets.
There are a couple, however, that have stood out since as we head deeper into an uncertain, if not turbulent economy. One of those is healthcare.
Firms want to dig deep to learn more about the devices and software systems being used in hospitals. Just as popular, though, are in-home services that allow people to receive diagnosis and treatment from the comfort of their home. This trend has become especially important since the onset of COVID.
Healthcare Due Diligence Process
“Essentially the goal of commercial due diligence is to validate the story that the target’s telling, or to identify the reality of the marketplace out there so that they can make an informed decision on their investment,” Jenkins says.
While the fundamentals of commercial due diligence are the same from one market to another, there are nuances to businesses based in hospitals, pharmacies and other related medical organizations.
Since these companies are creating or using products that affect people’s health, there’s increased risk, which means more scrutiny is needed.
“It can be a very different set of objectives, but if it’s a product, then there definitely will be regulatory issues involved,” Jenkins says.
Service providers in healthcare aren’t just trying to make better products and improve services, they also want to be more affordable.
“It’s still technology, but we’re not trying to design the greatest device, the greatest stent in the world, or the greatest cardiovascular diagnostic product ever made,” Jenkins says. “It’s really what sort of products and services can we develop that are going to not only get the job done, but do it in a more cost-effective manner so that it’s more affordable for the healthcare ecosystem.”
In particular, that ecosystem includes insurance providers and patients. The easier it is for them to engage with a health company’s products or services, the more successful the business will be.
“There are just a lot of moving parts in healthcare that make it an interesting space,” Jenkins adds.
BluWave co-head of research and operations Scott Bellinger most frequently fields calls related to these areas:
Medical Devices: “Regulatory review on manufacturing processes to make sure they’re FDA compliant.”
Operational Diligence: “Understand how you can manufacture those devices at a faster more efficient clip.”
Ancillary Service Buildouts: “For example, if you’re ear, nose and throat, do they have an ambulatory services center?”
Jenkins isn’t the only one seeing an increased demand for commercial due diligence in healthcare. It continues to be one of the most important industries to our clients as well.
That’s why we spend so much time connecting with and evaluating due diligence service providers who know healthcare – and every other sector that touches private equity – inside-out, backward and forward.
Our research and operations team takes a hands-on, white-glove approach to every project they service, from the first scoping call until after the engagement is complete.
If you’re looking for proven, PE-grade service providers to conduct buy-side diligence on your healthcare acquisition, contact us today. We’ll provide two or three best-fit options for your exact situation and specific needs within a single business day. From there, we’ll hold the third-party resource accountable and make sure they’re meeting all your needs until the ink is dry.
*Privacy is important to us. While the source and company name have been changed, these are real quotations from a real service provider in the BluWave Business Builders’ Network.
Connecting with a service provider you can trust is like looking for a great dentist. Once you find “the one,” you wouldn’t put your teeth in anyone else’s hands.
The same goes for your business. After a successful engagement with a trusted third party, you save a lot of time by contacting them directly the next time you have a need.
There are reasons you have go-to service providers: they’re fast, reliable and they know your business.
But if you love them so much, you’re probably not their only client. Far from it.
So what happens when you reach out and they tell you they simply don’t have the capacity to take on more work on the timeline you need? Or worse yet, they give you their B-team.
There are a number of reasons service providers could suddenly be in high demand. A bounce-back from a recession. A surge in deal flow. A hot new trend of which everyone’s trying to stay ahead.
When this happens, BluWave is on standby with a deep bench of trusted, PE-grade third parties who can deliver the exceptional work you expect no matter what your industry.
In fact, we experienced this post-COVID recovery when the whole world got back to business at once and it seemed like there wasn’t enough help to go around. At that time, we heard from dozens of private equity firms that couldn’t book their preferred third-party resource.
We helped those firms by connecting them with industry-specific firms and consultants that understood their business’s most pressing needs.
Every service provider in the Business Builders’ Network has gone through a rigorous vetting process, giving us confidence in every match we make whether it’s a first-time engagement or a repeat relationship.
BluWave founder and CEO Sean Mooney has three tips for organizations when their usual service providers are at full capacity.
1) Use Alternatives
“If you’re go-to is sold out, don’t try to force them into giving you capacity. You’ll get the C team,” Mooney says. “There are plenty of other comparable PE-grade specialists that you should use.”
2) Use Substitutes
“There are other diligence and value creation products that go by a different name but still serve your need,” he adds. “For instance, if you can’t get a commercial due diligence group to meet your deadline, use a voice of the customer group to do a deep dive on your target’s customers.”
3) Use Independent Consultants
“There’s a select world of independents who spun out of name-brand shops and can give you the same product at a fraction of the cost,” Mooney says. “This cohort works well not only for commercial diligence, but also for operational and HR diligence as well as value creation.”
Mooney recognizes that trusting your most important work to new partners can be scary. With the right introduction, though, the risk can have a huge payoff.
“Using new groups can be nerve-racking,” he says, “but the BluWave network of PE-grade resources is on standby to meet your specific needs.”
Whether your go-to service providers are at full capacity, or you just don’t know who to turn to, give our research and operations team a call. They’ll connect you with a shortlist of exact-fit third parties within a single business day, and be by your side until the completion of the project.
