Customer Type: PE Firms

Culture-Oriented VP of Human Resources for Financial Services Portco

Industry: Professional Services

Service Area: Human Capital – VP of HR

Client Type: Small-Market PE Fund

Service Provider Type: HR Executive Search Firm

The Need
Strategic HR Leader for Rapid Growth

A leading financial services company was on the lookout for a VP of HR. With a strong presence across dozens of locations, the company had been experiencing rapid growth, boasting a revenue in the tens of millions of dollars. Its unique service offering, assisting financial advisors in setting up qualified retirement plans, had set them apart in the industry. As the company expanded, however, leadership realized they needed for a strategic HR leader. This new role was envisioned to not only manage the day-to-day HR operations but also to be a culture carrier and strategic partner in the company’s growth journey.

The Challenge
Local Candidate who Understands Industry Intricacies

The search for the right VP of HR was not just about filling a role; it was about hiring someone who could seamlessly integrate into the company’s culture and ethos. The ideal candidate would have experience in the financial services sector, with a deep understanding of its intricacies. A locally based candidate would be a bonus.

The company also emphasized the importance of industry experience, especially in online lead generation and financial services. With such specific criteria, the challenge was to find a candidate who would tick all the boxes.

How BluWave Helped
Knowing Exact-Fit Providers Ahead of Time

BluWave, with its extensive network and deep understanding of the professional services industry, took on the challenge. Recognizing the unique needs of the company, BluWave presented three exact fit HR executive search firms with a track record of placing top-tier HR leaders in the financial services sector. After the initial introductions, the PE firm selected the partner that would be the best fit for its situation and could understand how to align a candidate with the company’s vision and culture.

The Result
HR Executive who Fit Perfectly within Culture

With BluWave’s assistance, the financial services company was able to identify and onboard a VP of HR who not only met its technical and industry-specific requirements but also resonated with its company culture. This strategic addition to its leadership team has positioned the company for continued success and growth, ensuring that its HR strategies are aligned with its business objectives.

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

A Wave of Deals is Coming: Commercial Due Diligence Webinar

September 20, 2023 Brad Gerick

The private equity deal market has been slow in 2023. There are signs, however, that that could change soon.

In fact, BluWave founder and CEO Sean Mooney believes PE is ready to “call a bottom” based on proprietary internal data. That means that firms must have their due diligence resources lined up ahead of the anticipated wave of deals this fall and beyond.

Mooney was recently joined by BluWave Head of Technology Houston Slatton and Hidden Harbor CP Partner Andrew Joy to discuss the intricacies of commercial due diligence on a live webinar.

Watch the Webinar Replay
A woman at a desk with a computer. You can't see the top half of her face. She's wearing a white shirt while writing something in a notebook to the right of the computer. Her cell phone is also on her desk. It appears to be sunrise or sunset in the background.

Here are some of the top takeaways from their conversation:

Understanding Target Markets

The panel touched on how commercial due diligence is pivotal in assessing market conditions.

“The definition of commercial due diligence in my mind is a synthesis of all factors, both historically and in the future that affect the growth and the competitiveness of the target in that particular model,” Joy said.

This “synthesis” involves myriad factors, from end-market demand drivers to regulatory inputs and global competition. The goal is to understand not just the immediate future but to project growth and trends 10-20 years ahead.

“Commercial due diligence is a term of art for a market study,” Mooney added. “It’s standard operating procedure by the best private equity investors in the world.”

READ MORE: What is Commercial Due Diligence?

The Role of Due Diligence in Bid Strategy

The competitive landscape of private equity demands a unique approach to bid strategies.

Mooney said private equity firms aim to see something unique in their investment targets that others don’t.

“One of the big trends is investment bankers are starting to put sell-side commercial due diligence studies in the data rooms,” Mooney said. “The incentive may be for private equity firms, ‘Oh, this is great, I can rely on the money that they’ve spent and I’ll just take their word for it.’ “But a newsflash is, if you’re buying the market study, you get to pick what it says so you can frame it.”

He added that that’s one of the reasons the private equity industry still uses its “own source of truth.”

Joy elaborated on other challenges PE firms are facing.

“I think as information and data has become more commoditized and more accessible, it’s becoming harder and harder to really find areas where you have a competitive advantage,” he said.

Finding that unique angle in a saturated market can make all the difference for a firm.

READ MORE: Buy-Side Commercial Due Diligence Strategies

Choosing the Right Commercial Due Diligence Provider

The choice of a due diligence provider can make or break a deal.

Mooney emphasized the importance of team experience and relevance.

“When you’re vetting your group, I’ll show exactly how we do it. It’s ‘What is your experience in the defined industry you’re exposing? Which projects have you worked on in this industry?’ When did they work on it? Who is the team that worked on it?”

In the end, he said, it comes down to ensuring that the diligence team has relevant experience with the target, the market and the industry.

“I think it’s really finding the right team that has the most relevant experience and just knows the market cold,” Joy added.

Mooney also warned against trying to pull an up-market firm down to your budget. Because of scarcity of resources, this could mean they don’t put their best team members on your project.

Commercial Due Diligence Resources

As the PE world braces for influx of new deals, having your diligence sources lined up ahead of time is key. To learn more about how to prepare, you can watch the webinar on demand.

If you would like to hear about the commercial due diligence resources in the Business Builders’ Network, contact our research and operations team to scope your need.

Start Your Project

Panelist Bios:

Interim CFO with Expertise in Commodities, Hedging for Manufacturing PortCo

Industry: Manufacturing

Service Area: Human Capital – Interim Leadership

Client Type: Portfolio Company – Food Ingredients Facility

Service Provider Type: Interim CFO

The Need
Expertise in Financial Management and Hedging

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

The Challenge
Hands-On CFO with Industry Expertise

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

How BluWave Helped
Short List of Industry Finance Experts

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

The Result
Recipe for Sweet Success

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

Targeted Market Research for a Software Technology Company

Industry: Technology – Software

Service Area: Voice of the Customer

Client Type: Portfolio Company – B2B Data Management

Service Provider Type: Market Research Firm

The Need
Specialized Market Research for Master Data Management

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

The Challenge
Quality Insights Within Budgetary Limits

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

How BluWave Helped
Bridging the Gap with Expert Market Research

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

The Result
‘Good Partner’ for Great Value

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

The service provider you selected was both affordable and a good partner for our portfolio company.

-Partner at PE Firm

Transforming Big Data into Actionable Insights for Legal Services

Industry: Professional Services

Service Area: Technology

Client Type: Portfolio Company – B2B Legal Services

Service Provider Type: Business Intelligence, Analytics and AI Firm

The Need
Efficient Analytics for Transaction Lode

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

The Challenge
Large Datasets and Tight Deadlines

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

How BluWave Helped
The Right Big Data Connections, Fast

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

The Result
Seamless Integration, Insightful Analysis

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

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

-Vice President at PE Firm

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

September 15, 2023 Brad Gerick

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

Here are some of the top takeaways from their conversation.

Listen to the Episode

3 Takeaways from Matt

1. An Unconventional Route to PE

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

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

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

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

2. Value Creation with a Human Touch

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

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

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

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

Data & Analytics Resources

3. Data and Decision-Making

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

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

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

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

Download the AI White Paper

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

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

Chief Medical Officer Search for Healthcare Services Firm

Industry: Healthcare Services

Service Area: Human Capital

Client Type: Private Equity Firm

Service Provider Type: Executive Search Firm

The Need
Chief Medical Officer with Data Expertise

A private equity firm reached out to BluWave in need of a chief medical officer (CMO) for one of its portfolio companies in the healthcare services sector. The ideal candidate would not only possess the typical expertise of a CMO in healthcare practice and management but also have a deep understanding of population health and clinical data analytics.

The Challenge
Niche Expert in a Broad Healthcare Landscape

The portfolio company provided primary care and mental health services to community-based clinics, specifically serving veterans. These clinics were contracted by the VA and were spread out nationally.

The company was in a unique position. Their previous chief medical officer had recently left, and they were looking to fill the position with a candidate possessing a slightly different skill set. The new CMO would be responsible for managing and leading the clinical outcomes and metrics. A key part of their role would be to improve the analysis of clinical data sets and apply population health theory.

How BluWave Helped
Specialized Search for a Unique Requirement

BluWave’s leveraged its extensive network and industry knowledge to immediately identify executive search firms with the niche expertise required for this role. A short list was presented to the PE firm, which quickly chose the best fit. By understanding the client’s unique situation and the intricacies of the healthcare sector, the firm facilitated a tailored search process, ensuring that the client was introduced to the most suitable options.

The Result
Tailored Match for Continued Success

The search was not only efficient but also aligned with the client’s unique needs, ensuring that the portfolio company was well-positioned for future success with the right leadership at the helm. The new CMO stepped in and, according to the PE firm’s associate VP, made an immediate impact.

Great job searching for an industry-specific provider and very responsive. Appreciated the ability to work on a contingency basis and flexibility in scoping given the unique nature of the search.

-Associate Vice President of PE Firm

Maintaining Rapid Healthcare Services Growth with Specialized CFO

Service Area: Human Capital

Client Type: Private Equity Firm

Service Provider Type: Executive Recruiting Firm – CFOs

Industry: Healthcare Services

The Need
Finance Leader for Rapidly Growing Healthcare Portco

A private equity firm specializing in mid-market investments and family office collaboration approached BluWave with a unique requirement. They were searching for a chief financial officer for one of their portfolio companies in the healthcare services sector. This healthcare firm had experienced substantial growth in recent years, nearly quadrupling its annual revenue.

The Challenge
Operational Disparities Across Locations

The portfolio company had pursued growth through acquisitions and de novo ventures. It operated more than 10 branches, some branded and others unbranded, leading to technological disparities among locations. The main challenge lay in finding a CFO experienced in multi-site healthcare operations, proficient in managing finances in a cash-only environment and skilled at consolidating diverse operations under a unified tech stack.

How BluWave Helped
Specialized Firm To Streamline Search

BluWave quickly grasped the client’s unique requirements and the urgency of their need for a specialized CFO. They leveraged their extensive network and industry knowledge to identify potential executive search firms with expertise in healthcare recruitment. By providing a shortlist of specialized partners capable of addressing the client’s specific needs, BluWave facilitated a streamlined search process.

The Result
Finance Leader with Perfect-Match Skillset

The search firm BluWave placed successfully identified a CFO candidate with the relevant skills and experience. This CFO not only had expertise in multi-site healthcare but also had a track record of managing cash transactions and technology integration. This strategic recruitment met the client’s immediate needs and positioned the portfolio company for continued growth and operational efficiency.

They have done a nice job for us. They have sent us good candidates, been responsive to our questions and requests and helped drive the discussion.

-PE Firm Founder and Partner

Executive Search Firm Needed To Hire Technical Head of BD

Service Area: Human Capital

Client Type: PE Firm

Service Provider Type: Business Development and Sales Executive Recruiting Firm

Industry: Manufacturing

The Need
Sales Executive for Unique Challenge

A private equity firm contacted BluWave in need for an executive search firm to hire a head of business development for one of its portfolio companies. This, however, wasn’t your typical sales role. The company had an exceptionally long sales cycle, sometimes exceeding a year, with numerous stakeholders involved, including engineering and buyers. This role demanded a technical acumen, making it distinct from conventional sales positions. While contingent recruitment was preferred, retained services weren’t out of the question.

The Challenge
Filling Big Shoes of Outgoing Executive

The portfolio company, an investment made in 2017, was a century-old firm operating in the metal stamping industry. It had an engineering-centric approach and had previously relied on a sales individual with a customer service and account management background. This person worked alongside two manufacturing representatives, but three of them had not been productive for years.

In a strategic shift, the company transitioned to collaborating with multiple rep groups and a third-party agency to generate leads. The retiring sales individual had been the key point of contact, handling opportunities from RFQ to closing. As this crucial team member was about to retire, the challenge was to find a replacement capable of understanding the technical aspects, navigating a long sales cycle typical in their industry and building relationships with customers rather than just selling from a catalog.

Reporting directly to the President, this would be the sole sales role in the company. The individual would work as an individual contributor, and there was no immediate need for building a larger sales team.

How BluWave Helped
Knowing the Right Firm To Identify Ideal Candidate

BluWave quickly grasped the client’s requirements and preferences: a versatile candidate who could be a strong utility player in a specialized sales role. Industry-specific experience was also a requirement, as was the ability to work on the road for extended periods.

Understanding the nuanced demands of this role, BluWave identified potential recruitment partners who excelled in placing sales leaders within extended sales cycles in the manufacturing domain. Within a short timeframe, a list of suitable executive search firms was provided, aligning perfectly with the client’s expectations.

The Result
PE Firm, Specialized Recruiter a Perfect Fit

This partnership led to a seamless collaboration between the client and the chosen executive search firm. They were able to select a candidate who not only possessed the technical skills required but also demonstrated a profound understanding of the unique challenges posed by the lengthy sales cycle. This strategic recruitment ensured that the portfolio company had the right leader to navigate this phase effectively.

Overall, I think they had the best understanding of what was needed in a somewhat specialized sales role. Typically, in a process, we will get some amount of odd-ball candidates from a fit perspective, but I thought everyone that they brought us was reasonable. We will very likely use them again.

-Managing Director at PE Firm

Connecting PE Firm with Top Talent for a Vital CFO Role in the Software Sector

Service Area: Human Capital

Client Type: Large Capital Private Equity Firm

Service Provider Type: Specialized Executive Recruiting Firm

Industry: Software Technology

The Need
CFO Search in the Software Sector

A large capital private equity firm, required a new chief financial officer (CFO) for its portfolio company in the software technology sector. This B2B SaaS platform, based on the East Coast, had reached a revenue milestone of nearly $100 million. The task at hand was to identify a highly skilled CFO capable of navigating the dynamic landscape of this technology-driven industry.

The Challenge
Finance Expert with B2B Software Experience

The firm needed a CFO with the right mix of financial expertise, industry knowledge and private equity experience. They also needed to understand the intricacies of the B2B SaaS market, have a track record of success in similar PE-backed businesses and align with the company’s objectives in this critical growth phase. And they needed all this fast.

How BluWave Helped
Knowing the Right Resource for the Job

BluWave provided a short list of executive search firms the next business day. The PE firm quickly selected the best-fit specialized recruiter for the situation. The firm BluWave helped select leveraged their industry experience and history of successfully placing CFOs in similar PE-backed SaaS businesses.

The Result
The Right Leadership at the Right Time

The client and firm were a natural fit, enabling them to choose the best candidate, in a short amount of time. The hired executive not only had the required financial acumen, but also their understanding of the software industry and experience with private equity-backed enterprises. The successful placement gave the portfolio company the leadership it needed to navigate its next phase of growth and development.

I worked with the recruiting firm on a daily basis and was impressed with all three team members.

-PE Firm Portfolio Talent Principal