Service Provider Type: Growth Strategy Consultants
Industry: Various
The Need
Structured Planning for Unleashing Potential
A forward-thinking lower-middle-market private equity firm aimed to empower its newly acquired portfolio companies through a comprehensive onboarding and strategic planning process. The objective was to shape a clear five-year plan encompassing customer segmentation, core value proposition development, investment allocation, sales and marketing strategies and an integrated budget.
The firm sought experienced consultants, ideally partners or associate partners, to lead the analysis, guide strategic planning sessions and establish a cohesive plan with actionable steps, ownership, deadlines and budget distribution.
The Challenge
Aligning Visions and Establishing Accountability
The private equity firm faced the challenge of harmonizing diverse visions and strategies across their portcos. The businesses possessed strong product insights but required support in fostering an accountable team culture. Additionally, the PE firm sought a leader who could implement an OKR framework to enhance alignment and execution across the organization.
How BluWave Helped
Industry-Specific Strategic Implementation
BluWave connected the firm with industry-specific consultants for its portcos. They quickly absorbed diligence materials and external market data, creating a comprehensive approach to guide the five-year planning process.
Starting with a 100-day plan scope, the firm developed of a three- to five-year strategic plan. This included defining core value propositions, strategic initiatives and aligning them with budget considerations and executive scorecards.
They also designed and implemented an OKR program for each organization. This framework facilitated alignment, empowering the CEOs to elevate operational efficiency and accountability.
The Result
Operational Efficiency Across Portcos
The portfolio companies established clear trajectories for growth. The result was a meticulously crafted five-year plan encompassing strategic initiatives, actionable steps and budget allocation, all aligned with the private equity firm’s overarching objectives.
A lower-middle-market PE firm sought to support its recent acquisition of a tech software company specializing in IT solutions and tools. With an impressive revenue of more than $10 million, the company lacked prior PE backing and a CFO.
An interim CFO was identified as the perfect solution to provide hands-on support in professionalizing finance functions and building a robust team. This person would also need to be well-versed in PE-backed environments and possess revenue software experience.
The Challenge
Professionalizing Finance Function in Complex Business
The tech software company, despite its strong revenue performance, needed to establish a solid financial infrastructure. With a first-time PE backing and debt on the books, the company faced complexities in handling low friction, high-velocity sales. The challenge was to find an Interim CFO capable of driving financial transformation, implementing strategic processes and aligning financial operations with PE expectations.
How BluWave Helped
Empowering Financial Professionalization
BluWave provided the PE firm with multiple industry-specific interim CFO candidates. The PE firm quickly identified and engaged with the best fit. Possessing deep experience in professionalizing finance functions for SaaS businesses after acquisitions, BluWave’s recommendation quickly addressed the company’s needs.
The Result
Driving Growth and Financial Excellence
Taking a hands-on approach, the interim CFO collaborated with the existing controller to streamline finance processes, implement best practices and optimize reporting structures. Additionally, the CFO provided strategic insights aligned with the company’s long-term objectives, enabling scalability and improved resource allocation.
The tech software portfolio company established a robust finance function tailored to PE-backed businesses. The organization achieved heightened financial visibility, improved data-driven decision-making and effective financial resource allocation.
A lower-middle market PE firm needed an interim CFO at its portco to bolster the new commercial roofing platform’s financial visibility. The platform required a robust KPI dashboard and business intelligence tools to integrate seamlessly with its IT systems, facilitating efficient financial tracking and CRM integration. They previously consulted with a specialist in custom report-building, but sought a more comprehensive and holistic solution provider to meet their evolving needs.
The Challenge
Tailored Solutions for a Decentralized Structure
The portfolio company faced the challenge of creating tailored business intelligence tools and KPI dashboards for the commercial roofing platform. The platform operated with a decentralized structure, with branch managers responsible for their individual branches. To strengthen financial visibility at the home-office level, the solution needed to encompass a broad range of requirements and provide insights that catered to the platform’s unique industry dynamics.
How BluWave Helped
Connecting the Right Candidate for Custom Solutions
BluWave connected the lower-middle market PE firm with skilled interim candidates experienced in building custom reports and developing sophisticated business intelligence tools. The firm selected the best match for their portco, enabling them to design tailored solutions for their commercial roofing platform. BluWave facilitated seamless communication between the firm and the executive, ensuring all specifications were met with precision.
The Result
Empowering Growth with Comprehensive Business Intelligence
Under the interim executive’s leadership, the commercial roofing platform successfully built out KPI dashboards and business intelligence tools that seamlessly integrated with their IT systems. The comprehensive solutions provided unparalleled financial visibility, empowering the platform to make informed decisions and optimize their sales and marketing machine.
Furthermore, the interim CFO’s thoughtful approach and commitment to understanding the platform’s unique needs paved the way for efficient acquisitions, with future plans of expanding the platform’s portfolio within the roofing industry.
The interim executive you selected was great to work with.
Service Provider Type: ERP/HR Integration Consultant
Industry: Industrial Services – Construction & Engineering
The Need
Consolidate New Businesses within Holding Company
A lower-middle market private equity firm sought BluWave’s assistance in integrating three specialty industrial contracting businesses into a new holding company. These businesses, operating in scaffolding, painting and other services across petrochemical, general manufacturing, and aerospace and defense sectors, collectively employed 1,000 professionals, with 900 in the field. The private equity firm required an experienced ERP/HR integration consultant to consolidate the entities, streamline HR infrastructure, and harmonize ERP systems to facilitate seamless growth.
The Challenge
Unifying HR and ERP for Consolidated Success
Each business had its own HR and ERP systems. The PE firm wanted to combine them into a single higher-level legal entity. This required careful planning and execution to ensure a smooth transition for all 1,000 employees. Additionally, they had to address the distinct ERP systems in use – two on QuickBooks and one on Spectrum – and assess the feasibility of consolidating the businesses on the Spectrum platform.
How BluWave Helped
Orchestrating the Path to Integration
BluWave presented multiple exact fit candidates to working on both the HR and ERP aspects of the consolidation. The selected expert facilitated the migration of all employees from the various entities into the new holding company, harmonizing the HR infrastructure.
The ERP consultant conducted a thorough evaluation and audit of the existing systems. They developed a comprehensive plan to migrate the two businesses on QuickBooks to the Spectrum ERP system, which would be the go-forward platform for the combined entity. This evaluation aimed to confirm the viability of the integration strategy while ensuring a seamless transition to the new ERP environment.
The Result
Paving the Way for Seamless Growth
With the third-party resources selected by BluWave, the three specialty industrial contracting businesses successfully integrated into the new holding company. The consolidation streamlined HR infrastructure, providing a unified approach to employee management across the 1,000 professionals. Furthermore, the ERP systems were harmonized on the Spectrum platform, enhancing data visibility and operational efficiency.
The newly formed holding company, boasting $15 million EBITDA, is now equipped to drive growth and success in the industrial services sector.
Industry: Professional Services: Technology: Software
The Need
Charting the Course for Future Growth
A middle-market private equity firm engaged BluWave to assist one of their portfolio companies, a managed IT service provider specializing in financial services and life sciences sectors. The company sought a consulting partner to craft a robust three-year product vision roadmap. This roadmap would serve as a strategic guide, outlining the offerings, sales, delivery and performance measurement aspects of the company’s future direction.
The Challenge
Identifying Expansion Opportunities in a Niche Market
The managed IT service provider needed a comprehensive roadmap to inform its business strategy over the next three years. This required a deep understanding of the target customer profiles, their purchase journey and emerging market trends. BluWave’s challenge was to collaborate with a consulting partner that possessed a strong background in IT managed services, particularly in the financial services and life sciences sectors, which are heavily regulated.
How BluWave Helped
Experienced, Niche-Specific Resource
BluWave immediately reached out to the consulting firms it already knew that had a proven track record in developing product roadmaps for IT managed service providers. The selected consulting partner brought hands-on experience and a deep understanding of IT MSP products to the table.
The consulting partner’s team undertook a meticulous customer and market assessment, conducting interviews with existing and potential customers to understand their needs and preferences. Simultaneously, they performed a comprehensive competitive analysis to identify opportunities for expanding the company’s offerings.
The Result
Clear Path to Growth
Thanks to the consulting firm with which BluWave the company, the managed IT service provider successfully crafted a the-year product vision roadmap. It incorporated customer and market insights, defining the target customer profiles and outlining the path to delivering unmatched value.
The company’s leadership gained clarity on their future direction, aligning product offerings, sales, delivery and performance measurement. Armed with a well-structured roadmap, the managed IT service provider is better positioned to navigate the complexities of the financial services and life sciences sectors.
The collaborative effort between BluWave and the consulting partner culminated in a strategic plan tailored to the company’s unique position in the tech sector. As they continue to serve their niche markets, the managed IT service provider can confidently implement their growth strategy, expand their offerings, and unlock new opportunities for success.
Financial Chief to Address Complexity, Provide Visibility
A lower-middle market private equity firm sought BluWave’s expertise in interim executive searches to assist one of their portfolio companies in the healthcare services industry. The company provides physician management and cancer center development services to hospitals and physician partners.
Following a significant acquisition, the business experienced rapid growth, but its current management team struggled to keep up with the complexities of the expanded operation. While not a turnaround situation, the firm acknowledged the need for stronger leadership to navigate the evolving landscape.
The Challenge
Organizing Financial Operations for Growth
The healthcare services business encountered challenges due to its accelerated expansion. The existing CFO lacked the visibility and expertise required to manage the finance function effectively. The company’s legal structures and numerous add-ons further complicated reporting and forecasting.
To address this, the firm sought an interim CFO to get its financial house in order, provide professional guidance on forecasting and optimize financial operations while they conducted a search for a permanent CFO. Additionally, they faced the task of hiring a new CEO, further necessitating competent leadership to ensure a seamless transition.
How BluWave Helped
Perfect-Fit Interim Executive Joins Team
BluWave promptly connected the lower-middle market private equity firm with a highly qualified Interim CFO possessing extensive experience in managing complex financial structures within the healthcare industry. The chosen executive had a proven track record of driving financial visibility and establishing robust forecasting processes.
Their expertise in reimbursement models and joint ventures made them an ideal candidate to guide the business through its rapid-growth phase. Moreover, the Interim CFO’s understanding of the intricacies of healthcare services facilitated the organization’s ability to make sense of vast amounts of data and derive meaningful insights.
The Result
Establishing Financial Stability and Clarity
The appointed interim CFO swiftly assumed responsibilities, bringing much-needed organization and professionalism to the company’s finance function. With their guidance, the business gained improved financial visibility, allowing for informed decision-making during a critical growth period.
During the CFO search process, the Interim CFO’s contribution proved invaluable, providing financial leadership and maintaining the firm’s stability. Additionally, they collaborated seamlessly with the newly appointed interim CEO, ensuring a smooth transition.
The healthcare services business came out better equipped to manage its current growth trajectory and address future opportunities with confidence.
A small-market PE firm engaged BluWave for their interim executive expertise to address a critical need at a mechanical contracting portfolio company. The business faced sudden changes in its leadership, as the existing CEO decided not to proceed with the planned transition. The PE firm sought a temporary chief executive to bridge the leadership gap, assess the business, drive operational efficiencies and provide commercial insights.
The mechanical contractor found itself in a challenging situation with a CEO checked out of daily operations. Additionally, senior leadership was experiencing increased pressure due to margin compression. The company needed an Interim CEO immediately to support the transition from the outgoing CEO and assess the business’s current state to identify improvement opportunities. This urgent requirement demanded a leader who could provide both operational and commercial expertise while navigating the unique cultural dynamics of a legacy business.
How BluWave Helped
The Right Match, Fast
BluWave swiftly connected the PE firm with a short list of highly qualified interim CEOs with backgrounds in operations and commercial management. The chosen executive had a track record of leading turnarounds and repositioning companies for growth, making him an ideal candidate. With experience in lender relations and understanding of financial dynamics, the interim CEO was also well-equipped to manage interactions with lenders and assist the company in developing a clear financial strategy.
The Result
Immediate Impact and Long-Term Strategy
The appointed interim CEO promptly assumed the leadership role, guiding the mechanical contractor through a smooth transition. Their deep operational understanding allowed them to identify low-hanging fruit for operational efficiencies, optimizing processes and breaking down silos within the organization. Simultaneously, they conducted a thorough commercial assessment, understanding the factors driving customer decisions and addressing issues affecting business growth.
The Interim CEO’s expertise in percentage of completion accounting and industry-specific knowledge significantly contributed to the improvement of the company’s finance function. They engaged with lenders transparently, helping them understand the business’s current state and future prospects, leading to a strengthened relationship. Furthermore, the interim CEO provided strategic insights on the nature of leadership required to execute the company’s growth plan.
With the Interim CEO’s guidance, the mechanical contractor gained clarity on its financial performance, identified necessary investments for underwriting success and developed a roadmap for the future. This successful interim engagement provided the company with stability during a critical phase and positioned them for future growth.
During the engagement, a long-term chief executive officer was identified. The interim CEO facilitated a seamless transition as the new leader took the reins.
Client Type: Lower-Middle Market Private Equity Firm for Portfolio Company
Service Provider Type: Financial Integration Consultant
Industry: Chemical Manufacturing
The Need
Financial Integration for Add-On Acquisitions
A chemical manufacturer operating in the specialty treatment chemicals industry sought assistance with financial integration for their add-on acquisitions. With a focus on bridging the gap in financial onboarding and consolidating reporting packages, the client needed a specialized team to provide hands-on support and help streamline their financial processes.
The Challenge
Improving Financial Systems and Reporting
The client faced challenges in their financial systems and reporting due to the use of QuickBooks and the need for scalable solutions. With add-on acquisitions and plans for growth, they required an evaluation of their current systems and the implementation of appropriate ERP and CRM systems, along with adequate security, governance and controls.
How BluWave Helped
Connecting for Accelerated Growth
BluWave connected the client with a specialized financial integration consultant that provided on-the-ground support in putting together reporting packages, consolidating financials and assisting with financial onboarding. This person was able to hit the ground running and better prepare the portco for its rollup strategy.
The Result
A Solid Foundation for Expansion
Through the assistance of the financial integration consultant, the chemical manufacturer successfully improved their systems and reporting capabilities. This set them up to move into their buy-and-build phase and begin making acquisitions. The financial consultant stayed on for some of the initial acquisitions, buying the company time to select a perfect-fit CFO.
We are grateful to be able to partner with the new team we acquired and look forward to helping them further accelerate growth.
CEO Search for Rapidly Growing Home Services Company
A home services company, focused on consolidation and rapid growth, was in need of a new CEO. Having completed nine acquisitions and added key executives to their leadership team, they sought a strong executive recruiting firm that could identify and place a CEO with the right industry experience and a track record of leading decentralized teams in rapidly expanding companies.
The Challenge
Connecting with a Middle Market-Focused Executive Search Firm
The client had previously used various executive search firms but had experienced inconsistent results. They were seeking an executive search firm geared toward the middle market, with a solid process for candidate identification, screening and reference checks. They required a partner who could effectively navigate the residential services and facility services industry and deliver consistent results.
How BluWave Helped
Specialized Executive Search for Residential Services
BluWave tapped into its Business Builders’ Network to connect the PE firm with a short list of exact-fit executive search firms. Leveraging their expertise and industry connections, the recruiting group selected by the firm identified and vetted relevant candidates with extensive experience in leading large, decentralized residential services teams. The firm’s rigorous process paid off as they not only found a great fit for the role, but also the portfolio company’s growth strategy and culture.
The Result
Successful CEO Placement, Continued Growth
A new Chief Executive Officer with more than 20 years of experience was appointed to lead the company. He had previously worked in route-based businesses, including successful merger and acquisition strategies, and was the ideal candidate to lead the company through its growth and consolidation plans. The former CEO transitioned to the role of Executive Chairman of the Board, providing ongoing support with acquisitions and strategy.
The client expressed their satisfaction with the search process and the selection of the new CEO. His leadership skills, extensive experience and alignment with the company’s culture and values were highlighted as key factors in his appointment.
We are thrilled by the growth that the company has experienced so far and look forward to seeing it reach another level under the new CEO’s leadership. We could not imagine finding a more perfect leader to take the team through the next phase of growth.
