Customer Type: PE-Backed Companies
Interim CFO Elevates Real Estate Search Engine’s Financial Strategy
Industry: Technology – Software
Service Area: Human Capital
Client Type: Portfolio Company – Real Estate Search Engine
Service Provider Type: Interim CFO
The Need
Navigating Financial Transitions
A leading online real estate marketplace specializing in age-restricted communities was at a crossroads. With revenue of $15MM and a team of 50 employees and 20 contractors, they were gearing up to revamp their business model and set their annual budget. The challenges brought on by the pandemic had altered their sales funnel dynamics, and their existing financial model was due for an overhaul. Amid these shifts, the need for an interim CFO to steer them through this period became evident.
The Challenge
LeadGen Expert with Industry Experience
Operating as a unique platform in the real estate sector, the ideal candidate would be familiar with online lead generation. Real estate experience would be a significant advantage, too. Furthermore, understanding the intricacies of the company’s in-house developed front and back-end systems was crucial. With an ongoing annual audit and the recent onboarding of a new FP&A manager, the interim CFO’s role was to ensure a seamless transition without any operational disruptions.
How BluWave Helped
The Right Solution, Fast
BluWave swiftly grasped the distinct needs of the real estate marketplace. Tapping into its extensive network, BluWave introduced the company to a short list of seasoned interim CFOs. After introductions were made, the portco zeroed in on the candidate that brought to the table a rich experience in online lead generation and a profound understanding of financial modeling and budget building. The temporary executive was not only equipped to oversee the annual audit but also possessed the strategic vision required to reshape the business model in alignment with the company’s objectives.
The Result
Strategic Financial Revamp, Strong Foundation for Future
The interim CFO integrated effortlessly into the team. In the initial phase, she prioritized ensuring the smooth operation of the company’s financial functions. As the engagement evolved, the CFO transitioned from a full-time role to a part-time strategic advisor, offering the company the flexibility it sought. Under the interim CFO’s guidance, the company successfully overhauled its financial model, laying a robust foundation for stability and growth.
The interim executive you selected for us did great work. We would rate her as great overall.
-CEO of Portfolio Company
Ed Hine, Cold Bore Capital | Breaking the Speed of Sound: Strategic Private Equity Buy and Builds
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.
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’
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.
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.”
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.
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.
Matt Cole, SBJ Capital | No One Gets Through Life Unscathed: A Guide to Private Equity Problem Solving
Scott Becker of McGuireWoods: Insights from the Mind Behind Becker’s Healthcare
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.
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.”
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.
