Customer Type: PE Firms
Recruiting a Turnaround CEO for Sporting Goods Manufacturer
Service Area: Human Capital
Client Type: Lower-Middle Market Private Equity Firm
Service Provider Type: Specialized Executive Recruiting Firm
Industry: Manufacturing
The Need
Sporting Goods Transformation
A lower-middle market private equity fund needed new leadership for their portfolio company as the existing CEO was about to step down. The organization, which makes athletic and sporting equipment, sought a visionary CEO deeply entrenched in the sector who also had supply-chain experience in founder-owned businesses.
The Challenge
A Business in Flux
The sporting goods company spanned two vital sectors: basketball goals and recreational center equipment, and working through dealers and installers who are remodeling or building schools. They faced a tumultuous path forward, though. Projects were priced years in advance, resulting in a backlog of low-margin products. Escalating steel prices due to global supply-chain issues exacerbated the difficulties.
How BluWave Helped
Industry-Specific Executive Search Firm
BluWave tapped its invite-only network for a short-list a executive recruiting firms. Their mission was to locate a team who could place a new executive with extensive experience in catering to schools and recreational centers, coupled with the acumen to navigate the intricate supply chain.
The Result
Turnaround CEO Built for the Job
Thanks to the selected firm’s search, an accomplished CEO with a stellar track record in the sporting goods sector emerged as the ideal fit. This visionary leader not only brought industry expertise but also the ability to deftly manage the complex supply chain and tackle pricing dilemmas head-on. The company was not only stabilized, but began to thrive again under its new leadership.
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.
Scott Becker, McGuireWoods | The Window of Opportunity: Healthcare and PE Insights
Investing in People for Growth: HR Leaders Webinar
Interim Ingenuity Webinar
Gabe Mesanza, Huron Capital | An Expert Perspective on Culture, Growth and Cash Flow in Private Equity
Elevating IT Leadership for Tech-Enabled Compliance Services
Service Area: Executive Search for IT Director
Client Type: Portfolio Company
Service Provider Type: Specialized Recruiter
Industry: Technology Services
The Need
Pioneering IT Leadership
A dynamic player in legal and compliance services identified a crucial need for strong IT leadership. With a robust front and back-end technology platform powering their operations, the company recognized the importance of a strategic leader to maximize technology investments and steer their growth journey.
The Challenge
Transforming IT Strategy
Despite investing millions annually in IT, the client lacked a seasoned leader to strategically manage their resources. Their existing IT manager, while skilled, wasn’t a suitable fit to lead and guide the organization toward a more strategic and efficient approach.
How BluWave Helped
Navigating Leadership Acquisition
BluWave connected the portfolio company with a specialized IT recruiter well-versed in tech-enabled services companies. The recruitment strategy aimed to identify a practical leader capable of transforming the IT function into a more professional and strategic unit under private equity ownership. This transformation involved assessing the existing team, redefining roles, responsibilities, and structures, and paving the way for the implementation of a forward-looking strategy.
The Result
Strengthened Leadership, Streamlined Operations
The collaboration led to the successful selection of an IT Director who brought both practical experience and strategic vision to the table. By reevaluating the IT organization’s structure and introducing new roles, the newly appointed director streamlined processes, optimized technology investments and established a clear roadmap for the future. The result was not only improved operations but also a more agile and effective approach to tech-enabled compliance services.
VP of Services Recruitment for Roofing Expansion
Service Area: Executive Search
Client Type: Portfolio Company
Service Provider Type: Specialized Recruiter – Sales
Industry: Construction – Roofing
The Need
Propelling Growth in Roofing Services
A prominent portfolio company in the roofing industry sought rapid expansion after acquiring three roofing firms, pushing their collective revenue to $50 million. To fuel this growth, they needed a visionary VP of Services who could lead their service business, enhance their commercial roofing endeavors and expand their service offerings.
The Challenge
Finding Industry-Savvy Leadership
The portco struggled to find a candidate with a deep understanding of the roofing industry. They wanted someone with a background in their same business with the ability to scale services. This leader also needed to contribute strategically to open new markets and fuel business growth.
How BluWave Helped
Strategic VP Recruitment
BluWave connected the portfolio company with a short list of exact-match candidates in the Business Builders’ Network. From those, the company chose a VP of Services with a proven track record in roofing operations and expansion.
The Result
Strengthening Business Expansion
The client secured a VP of Services with a strong industry-relevant background who also had experience with market expansion. This leader injected new energy into the roofing services business, fortifying existing operations and paving the way for successful expansion into untapped markets.
Interim CHRO Leads Complex Carve-Out Transition in Consumer Products Industry
Service Area: Interim Executives – Carve-out
Client Type: Lower-Middle Market PE Fund
Service Provider Type: Interim Chief Human Resources Officer (CHRO)
Industry: Consumer Products
The Need
Complex Carve-Out Transition
A lower-middle market PE fund was on the brink of closing a significant deal involving the carve-out of a global consumer products business. This would involve separating various entities from a large, global corporation. The challenge was compounded by the need to rely on a Transition Services Agreement (TSA) for critical support in the immediate aftermath of the deal.
The Challenge
Global Intricacies and TSA Reliance
The carve-out encompassed 11 entities distributed across several countries. With each entity presenting unique operational and regulatory challenges, the client required an experienced interim chief human resources officer (CHRO) with global expertise. The interim CHRO would not only have to manage the carve-out but also work within the framework of a TSA for an extended period. The client aimed to ensure business continuity, adhere to regulatory compliance and efficiently transition into operating independently from the TSA.
How BluWave Helped
Expert Interim CHRO Matching
BluWave sourced from its invite-only network an experienced interim CHRO who had a history of successfully executing complex carve-outs and global entity setups. The candidate possessed a deep understanding of setting up new practices, processes and HR functions from scratch. With a strong track record in change management and communication during transitions, the interim CHRO was well-equipped to manage the TSA and oversee the carve-out’s myriad challenges.
The Result
Seamless Carve-out and Transition
Under the guidance of the interim CHRO, the client’s carve-out was executed smoothly and within the expected timeframe. The interim CHRO’s expertise in payroll setup, change management and compliance ensured that all 11 entities were operational and aligned with regulations from day one. The outcome was attributed to the interim CHRO’s ability to effectively communicate with employees and manage expectations during a significant change.
Strategic Diligence Insights for Life Sciences Expansion
Service Area: Commercial Due Diligence
Client Type: Upper-Middle Market PE Firm
Service Provider Type: Life Sciences/Healthcare Strategy Consulting Group
Industry: Life Sciences
The Need
Clinical Research Expansion
A healthcare-focused upper-middle market PE firm needed in-depth insights into the clinical research sector as part of a commercial due diligence project. Seeking a life sciences strategy consulting group’s expertise, they aimed to assess sustainable margins, therapeutic expansion opportunities and industry trends within Clinical Research Organizations (CROs) and Site Management Organizations (SMOs).
The Challenge
Analyzing Complex Market Dynamics
The clinical research sector’s intricacies demanded a holistic understanding. The PE firm sought to understand margin sustainability, predict therapeutic advancements and evaluate industry consolidation’s influence on partnerships. Amid diverse site portfolios and rapid revenue growth, they aimed to grasp sector intricacies to make informed investment choices.
How BluWave Helped
Expert Life Sciences Guidance
BluWave connected the PE firm with a seasoned life sciences/healthcare strategy consulting group, well-versed in CROs, SMOs and drug development pipelines. This firm brought profound insights to address margin profiles, therapeutic prospects and industry shifts. Their comprehensive analysis empowered the PE firm with a thorough grasp of clinical research dynamics.
The Result
Informed Investment Strategy
Collaborating with the life sciences/healthcare strategy consulting group, the PE firm acquired vital insights for their clinical research sector investment. Armed with a comprehensive understanding of sustainable margins, therapeutic potentials, and industry trends, the PE firm made informed decisions that aligned with their investment objectives.