How we did it: Critical ops performance & improvement consultant to increase warehouse efficiency

A PE fund managing partner came to us with a critical need for an operational performance and improvement consultant that could evaluate and redesign the existing layout in one of their manufacturing portcos’ warehouses. Since acquiring the portco, the PE fund had discovered that there were foregone profits due to the lack of logistical reason that had gone into organizing the warehouse. They immediately needed a lean six sigma type consultant to come in and optimize the layout, process, and flow of the warehouse in order to increase operational efficiencies. We quickly worked to understand the key criteria of their need and then leveraged our data and human ingenuity to match them with two select, exact-fit, pre-vetted healthcare services senior advisors from our invitation-only Intelligent Network. The client selected their ideal choice and the PE fund was able to confidently engage the individual to drive operational performance and improvement by increasing warehouse efficiency.

Read the full case study.

We have a deep bench of ops performance and improvement consultants with a wide array of industry experience and skillsets. We would be happy to quickly connect you with the exact-fit ops performance and improvement consultant or any other service provider you need. Contact us here and our team will begin helping you within 24 hours.

Dual Commercial Due Diligence, GTM Provider Vitally Needed

PE Firm needs commercial due diligence and GTM strategist for construction target

A PE firm managing director came to us with a critical need for a commercial due diligence and GTM strategy provider for a target they had in the construction industry. Since identifying this target, they were looking for a group that could quickly perform diligence to determine if the market was strong enough for investment, and then promptly post-close help them develop a GTM strategy. Close to obtaining exclusivity, the PE firm was looking to find a provider with experience in the construction materials space that could move quickly once exclusivity was gained and stay engaged to create value post-close.

BluWave identifies provider to meet exact needs

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade commercial due diligence and GTM needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of providers that uniquely meet the private equity standard. We interviewed the PE firm to understand their specific key criteria and then connected the client with three select pre-vetted providers from our invitation-only Intelligent Network that fit their exact needs.

Firm engages with ideal provider to confidently move forward with investment

Less than 24 hours after the initial scoping call, the PE firm was introduced to three PE-grade providers that specialized in commercial due diligence and GTM strategy with experience in the construction materials industry. The client selected their ideal choice, and the PE firm was able to confidently engage this provider without wasting time or costs. They were able to leverage their insights to move forward with the investment and then utilize the same provider to quickly begin creating value in the new portco by developing a GTM strategy.

They have done a good job, been very responsive and given us valuable insights. I would give them good ratings on everything, would recommend them to others and I expect we will use them again in the future.

Managing Director at PE Firm

Operational diligence provider urgent for VMS target

Firm needs operational diligence for target VMS manufacturing company

A PE firm principal came to us with a critical need for operational diligence on a target they had in the vitamins, minerals, and supplements (VMS) manufacturing space. A week into the diligence process after signing an LOI, the firm needed someone to answer their question on how the target could increase throughput given their issues with on-time delivery, backlog, and capsulation of their powders. They urgently needed an ops diligence provider with experience in the VMS space that could identify areas for operational improvement during their 45 days of exclusivity on the target.

Using our extensive network, BluWave identifies top PE-grade providers

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade operational diligence needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of operational diligence independent consultants and boutique firms that uniquely meet the private equity standard. We interviewed the PE firm to understand their specific key criteria and then introduced the client to two select pre-vetted operational diligence consulting groups from our invitation-only Intelligent Network that fit their exact needs.

Firm properly assesses target company using selected provider

Within 24 hours of the initial scoping call, the PE firm was introduced to two PE-grade ops diligence providers with extensive experience in the VMS space. The client selected their ideal choice. The PE firm was able to confidently engage the provider without wasting time or cost and ultimately identify ways for the target to improve their throughput. The firm was so pleased with the provider’s operational performance and improvement recommendations that they engaged them again post-close to implement them.

Critical ops performance & improvement consultant to increase warehouse efficiency

Managing partner needs operational performance and improvement consultant for warehouse redesign

A PE firm managing partner came to us with a critical need for an operational performance and improvement consultant that could evaluate and redesign the existing layout in one of their manufacturing portcos’ warehouses. Since acquiring the portco, the PE firm had discovered that there were foregone profits due to the lack of logistical reason that had gone into organizing the warehouse. They immediately needed a lean six sigma type consultant to come in and optimize the layout, process, and flow of the warehouse in order to increase operational efficiencies.

BluWave identifies two exact-fit providers from pre-vetted network

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade operational performance and improvement needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of ops performance and improvement groups and independents that uniquely meet the private equity standard. We interviewed the PE firm to understand their specific key criteria and then connected the client with two select, exact-fit, pre-vetted operational performance and improvement consultants from our invitation-only Intelligent Network.

Client engages provider to drive operational excellence in portco

Within 24 hours of the initial scoping call, the PE firm and portfolio company were introduced to two PE-grade ops performance and improvement consultants that specialized in optimizing efficiencies in small assembly-oriented manufacturing companies. The client selected their ideal choice and the PE firm was able to confidently engage the individual to drive operational performance and improvement by increasing warehouse efficiency.

Immediate senior advisor with technical expertise

Firm critically needs senior advisor with software industry knowledge

A PE firm principal came to us with a critical need for a senior advisor that could provide them with industry insight on a target they had in the application security sector of the software industry. Before moving forward with an investment, the firm needed someone with technical industry expertise that could frame the competitive landscape for them, how the target was positioned against competitors, and apply this to the market opportunity. They urgently needed a mid-to higher level advisor with technical sector expertise that could answer their questions within 7 to 10 days.

BluWave quickly connects firm to advisor with industry expertise

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade senior advisor needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of senior advisors across an array of industries that uniquely meet the private equity standard. We interviewed the PE firm to understand their specific key criteria and then connected the client with the select pre-vetted senior advisor from our invitation-only Intelligent Network that fit their exact needs.

Firm engages advisor to gain valuable industry insight

Within 24 hours of the initial scoping call, the PE firm was introduced to a select PE-grade senior advisor that had deep experience working in the application security industry and was now doing consulting in the space. The PE firm was able to confidently engage the advisor and gain the necessary industry insights they needed from someone with technical expertise in order to make an informed decision on whether or not to move forward with the investment.

Vital IT diligence provider with specific industry experience

IT diligence provider needed for healthcare portco

A PE firm vice president came to us with a critical need for an IT diligence provider for a target they had in the intellectual development disabilities area of the healthcare services industry. With an LOI on the target and a need to close the deal by year-end, the PE firm urgently needed an IT diligence provider that specifically understood this niche area of the healthcare industry to come in and identify IT needs, risks, and opportunities for the target within the next two weeks.

Using pre-vetted network, BluWave identifies exact-fit provider

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade IT diligence needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of IT diligence providers that uniquely meet the private equity standard. We interviewed the PE firm to understand their specific key criteria and then connected the client with a select pre-vetted IT diligence provider from our invitation-only Intelligent Network that fit their exact needs.

Firm engages provider to make informed deal decision

Within 24 hours of the initial scoping call, the PE firm was introduced to a select PE-grade IT diligence provider with experience on similar projects in the behavioral health and rehabilitation space. The PE firm was able to confidently engage this provider without wasting time or cost and quickly gained the needed information about the target’s IT systems to make an informed decision on how to proceed.

Q3 PE Industry Insights

Every quarter our team analyzes the projects we work on with our 500+ PE fund clients to get a bird’s eye view of the market. This report (grab your copy here) calls out the trends that we are seeing across thousands of projects.

 

Key findings include deal surge continues – but due diligence is still a major area of focus, value creation is gaining momentum – one thing to specifically call out is that portfolio company operation performance and improvement had a huge spike in Q3.

 

 

To see these insights and more, watch the video below.

To get the report, click here and we’ll get that over to you.

 

 

 

 

An Expert Interview with RecruitingDaily’s William Tincup

Arlington, Texas-based William Tincup is currently the President and Editor-at-Large of RecruitingDaily, one of the leading content publishers and conference organizers in the HR and “People” space. He stands firmly at the intersection of HR and technology and wears multiple hats as a seasoned writer, speaker, advisor, and consultant to hundreds of companies. His latest creative endeavor is hosting Recruiting Daily’s “Use Case” podcast, where he interviews executives from across various industries including our CEO, Sean Mooney and gets them talking about everything from launching companies and managing employees to their greatest successes and most profound failures.  

To keep himself otherwise occupied and “feeling useful” (his words), Tincup serves on the Board of Advisors for companies like CloversMojoRankDiverselySkillsetGeescoreSturdyAIWork4, and SmartRecruiters. He’s an active advisor and mentor with The Workplace Accelerator (Southeast Asia) ATK LABS (Israel) and Talent Tech Labs (New York City). In 2020, while the rest of us were trying to adjust to Zoom fatigue and mask mandates, he was actively advising three acquired companies: Altru, sold to iCIMS Q4 2020; Talentegy, sold to Jobvite Q3 2020; and Hyphen, sold to Betterworks Q1 2020. Let’s not forget he was also a board member of Talentegy, a company sold to Jobvite Q3 2020.  

Suppose that doesn’t send your head spinning and also wondering what this Texan is eating for breakfast. In that case, rest-assured Tincup is less concerned with tooting his own horn and more focused on helping HR and talent acquisition (TA) professionals navigate uncharted waters—particularly in the wake of the pandemic and shifting cultural tides. His knowledge of everything from what candidates want from jobs to the importance of interim executives is worth listening to, if not ripping out several pages from his book.  

Kyle Johnson: Tell me about your journey to RecruitingDaily.

William Tincup: I fell in love with HR while in business school, specializing in marketing. My first entrepreneurial endeavor was a web development agency; I later co-founded a full-service advertising agency. While at the ad agency (then called Starr Tincup, now The Starr Conspiracy), we specialized in helping vendors and service providers market to HR & TA specialists. Essentially, we learned what worked and didn’t work when marketing to these practitioners. While doing so, I was the partner in charge of everything HR & TA for the agency. The deeper I got into it, the more I fell in love with the profession. In 2010, I was lucky enough to sell my equity to my business partner, and then I shifted my focus to HR & TA full time.  

I started by consulting vendors and practitioners in change management and user adoption of HR & TA software. I did that for a few years and loved it—I worked equally for both vendors and practitioners, solving real problems. Then, I decided to dig deeper into primary market research to learn more about implementations, user adoption, and vendor selection. After learning so much from the folks in the trenches and further expanding my knowledge base, I joined the team at RecruitingDaily to build the events and training business. In my current role, I get to talk with vendors and practitioners every single day. It’s incredible because I continually gain insights into where they see the world similarly and differently. 

KJ: What is the number one thing you see people searching for right now regarding types of jobs and work?

WT: In short, “something new.” More specifically, candidates who were fortunate enough to be employed during the pandemic but unfortunate enough to deal with the constant disruption and stress are now coming up for air and looking around for new adventures. In tandem with this “fancy shiny object” job search, most candidates learned that much of their knowledge and skills could be effectively managed remotely. That’s a game-changer. Once people figured out they could live in Park City, Utah while working for a company based in New York City, many of them made substantial lifestyle changes to strike that elusive life balance. It almost gave people permission to shed old norms and start fresh. They went from thinking, “I’m going to be stuck in an office for the rest of my life,” to “holy cow, I can work on the ski slopes!” 

Data certainly supports this new mindset: candidates are searching Indeed, Hired, ZipRecruiter, and company career pages using the words “remote” and “remote work.” They aren’t wasting time applying to jobs that don’t support their new ideal career. My take on this is simple: organizations that support remote work and its flexibility will win over those who choose not to. Talented people are going to work the way they want to work.  

KJ: Talk a bit about Critical versus Important talent and the implications of both in getting the right talent in place?

WT: HR & TA has historically looked at talent through the lens of 80/20, meaning 80% of the value of any given organization is derived from 20% of the workforce. That would be essentially the “critical” talent. Important would be everyone else. When I interact with investors, they tend to use the lens of 90/10, which is an even harsher way to think of critical talent versus important (or necessary) talent. Again, this is a historical view of talent. This has been the way we’ve viewed succession planning, training for high potentials, executive search, and more.  

I think we’ve got to update our worldview when it comes to talent; not only do we need to focus more on skills, but skills needed at that particular time. Just as manufacturers look at “just in time” production, we need to think about talent from that perspective. What skills do we need right now, this moment, this hour, and this week, for this project? It becomes less of a game of what you’ve done in the past and how relevant your skills are right now. Genuinely talented people will always push themselves to acquire new and most relevant skills. So, some of the same people will be on the list as if nothing changed from the history lesson above, but other folks that didn’t have a certain pedigree, skill color, gender, etc. but DO HAVE the critical skills needed will find themselves on the list. Having scarce and vital skills is now how you separate yourself from everyone else.    

KJ: From your vantage point, what keeps HR up at night?

WT: It comes down to three things: (1) what is/isn’t “hybrid” and how do they do work, (2) how do they effectively attract talent, and (3) how do they effectively retain talent? Let’s unpack each of those: 

#1—No HR leader knows how the hybrid workforce will look in the future. It’s all guesswork at this point. COVID forced us to rethink the workplace. We were already tracking towards remote work; the pandemic expedited the process. With other variants likely to come, no one knows when a safe return to the office will happen or if it will happen. This leads me to the next exciting aspect of hybrid work: the emerging concept of “everyone returns to the office” versus “I want to work remotely forever,” which are purposely opposites, but that’s what HR is dealing with right now and in the near future. How do they effectively navigate “radical flexibility” with all talent? Talent will ultimately decide where and how they work in an outcomes-based environment (read: knowledge working jobs). 

#2—Talent attraction, acquisition, and recruiting have become more challenging as the talent is now empowered to ask tougher questions. The table stakes have changed. Let’s say you have a great culture. Well, that’s fantastic; but how did your firm respond during COVID? Did you furlough or lay off anyone? If so, have they been hired back? If not, why and what kind of package did you give them to get through the pandemic? That is a primary candidate question thread. Then comes the more complex stuff with questions about DIBEE (diversity, inclusion, belonging, equity, equality), social justice, remote work, and transparency, to list a few. So, the job of a great recruiter got harder. Don’t cry for Argentina; the best TA pros are highly compensated and in short supply. That just made things interesting. Hiring a TA leader pre-COVID was not impossible—indeed, not as hard as placing a data scientist or software engineer, but it’s getting real close to impossible at this point. Candidates’ needs have changed, as I’ve already noted. Recruiters’ needs have also changed. Companies that recognize this will work hard to retain the best recruiters. 

#3—With retention, there are NO RULES. Do whatever you must to keep talented people. Whatever it takes. Turnover isn’t a curse word. Trees die in any given forest every single day. What you and your team should be focused on is “regrettable turnover.” Regrettable, meaning talent you wanted to keep but were unable to keep for whatever reason. How do you stop the bleeding of regrettable turnover? A few helpful hints: communicate that you value them, recognize the value they bring to the organization, find out what’s important to them and do your best to fulfill it, compensate them above market, conduct monthly stay interviews, and offer them continuous training. You get it. Do whatever it takes to learn what drives them, and then do whatever it takes to keep them engaged. No one wants to talk about it, but this is singularly the most essential thing HR does for a firm. Retention of top talent is the job. Get great at it quickly! 

KJ: Why do you think interim talent and experts are such a vital component of the workforce right now?

WT: A few things to consider here, (1) expertise is earned, (2) it turns out B12 is a good idea. Let’s explore… 

Throughout one’s career, we gather all kinds of experiences. Good, bad, historical successes and failures, and we should tap folks that have been there and done that. It doesn’t mean that we’ll do it exactly the way they have, but it could help us avoid simple mistakes. For instance, an HR leader that’s been a part of 20 union contract negotiations would be great to have at the table as we navigate a new deal with our union workers. That person can give us insight into things we don’t know and learn fast enough to impact the new contract. So, experts are vital. Early in my career, I was advised by a highly successful oilman in Dallas. I asked him over coffee, “what was the key to your success?” He responded, “simple, I let experts be experts.” Simple advice, but you’d be amazed at how many executives hire experts and summarily disregard their advice. Kidding not kidding. 

That might not be immediately recognizable in terms of the B12 reference, but interim talent is like a shot of B12. If you’ve ever had a shot of this stuff, you almost immediately feel better. Interim talent is a lot like that—new eyes on old problems. A new set of eyes can see things that might even be obvious, but the previous folks didn’t reconcile for whatever reason. Interim talent also doesn’t necessarily have to play by the same rules nor play politics. They’ve been hired to an interim capacity to fix things. If you’re a Pulp Fiction fan, Mr. Wolf is an excellent example of interim leadership. All the other guys could have probably figured out what to do, but Mr. Wolf had been there and done that. He had a plan and communicated effectively. Problem fixed. Interim talent is an excellent way to invigorate or reinvigorate a team and organization like a shot of B12.

KJ: What question should I have asked you but didn’t?

WT: Well, you asked great questions, but I think I’d be remiss if I didn’t mention the recent decision by the SEC to include workforce data in publicly traded companies’ earnings calls. It’s new but has been in the works for over a decade. It will be weird at first, but I see it as an excellent opportunity for HR & TA leaders. If our house isn’t in order, now is a great time to get it in order. It’s pretty simple when the SEC says something is noteworthy, Wall Street listens. What happens on Wall Street eventually makes it to Main Street. So, if you’re not studying the new regulations, you might want to burn some hours learning what is required to be reported. I mention this not to scare anyone; think about the tremendous opportunity that’s been granted to those responsible for talent.  

Sean Mooney on the Middle Market Musings Podcast

Recently, BluWave founder & CEO, Sean Mooney, spoke with Andy Greenberg and Charlie Gifford on the Middle Market Musings podcast about the origin of BluWave and the general trends that they all have observed recently in the private equity industry. Charlie and Andy asked Sean about how BluWave was born out of his time in the private equity industry and also drilled into the particulars of the business model. Gifford, Greenberg, and Mooney also spoke to trends such as higher valuations, compressed returns, greater industry specialization, and heightened pressure to capture growth and operational improvement that have been noticeable in the market as of late.

Interested in listening to the whole podcast yourself? Click below.

 

September 2021 Roundup: BluWave Client Insights

BluWave works with over 500 PE funds from around the globe, connecting them with pre-vetted, best-in-class, third-party service providers across a variety of resource and functional areas. From information technology and manufacturing to healthcare and consumer goods, our clients are expert business builders. In other words, they have their heads in the game and their hands on the pulse of news you can use. 

Check out the latest, curated collection of reports, insights, and musings from a handful of our PE fund clients. 

In ParkerGale’s most recent episode of The Private Equity Funcast, Devin and Jim cover common questions Limited Partners ask that PE folks should always know off the top of your head. Some of the questions they dive into include what’s the story of each portco, what was the structure of the deal, and what are the metrics behind the fund’s internal business?

Listen to the full podcast >>> 

This month marked 10 years since KKR first publicly released an ESG Report. In celebration of that milestone and the changes that have occurred in the ESG environment during that time, KKR published two reports this month: a report detailing ESG as it relates to their investment efforts, as well as their Global Impact Overview report which highlights ESG metrics for the portfolio companies in their Global Impact Fund. KKR aptly called out the importance ESG will continue playing in helping the financial community, “…work to achieve a more sustainable economy”.  

Read more >>> 

CFOs are undoubtedly one of the most critical positions on executive teams and the importance of this role has only grown in today’s competitive landscape. By fostering a community of the CFOs across their portfolio, Heartwood Partners has been able to observe firsthand how modern CFOs, “…maximize their value-add…” to businesses.

Read more >>> 

TCV reflects on Nerdy’s remarkable growth and innovation story now that it has become a publicly traded company. Started by a college student that saw an opportunity to disrupt the legacy tutoring market; it was hard work, a focus on high-revenue growth, and a mission to better match tutors and students given needs and expertise without worrying about geography that led the company to achieve such success. 

Read more >>> 

You can find last month’s roundup here. 

PE VP Forum Recap | September 2021

Every quarter we gather Vice Presidents in PE to discuss current industry topics and to offer these peers the chance to gather, share information, and decompress with one another. In our most recent event, we discussed many topics and have listed our top takeaways below.

These forums are invite-only and follow Chatham House Rules, so listed below are high-level takeaways only. Are you in private equity and interested in joining fellow PE VPs during our next PE VP Forum? Please contact us at events@bluwave.net.

Deal Yardstick 

  • Firms are using a mix of quantitative and qualitative scorecards to gauge the attractiveness of a deal. Our VP attendees discussed the value of scorecards, but that they also need to be used in a measured way that incorporates other important factors during diligence. 

3 Things The VP Attendees Shared That They Thought Would Improve the Deal Evaluation Process Most

  •  Calibrating the level of diligence with the impact of a deal – beware of analysis paralysis.
  •  Let associates present deals during the Monday Morning Meeting for training and development purposes.
  • Find a way to streamline the NDA process which is time-consuming without apparent value add.  

IOI/LOI

  • Different firms are deploying different approaches to get the highest expected value out of their efforts before LOI.  

Portco CFOs

  • Develop a CFO playbook to help onboard CFOs more consistently and quickly.  Collaborate with and nurture your CFOs, but hope is not a strategy if they are not working out. 

We thoroughly enjoyed getting to gather with PE VPsto discuss these current industry hot topics.  Here at BluWave, we are specialized to quickly connect you with the exact-fit, pre-vetted, PE-grade service providers you need exactly when you need them.

Never worked with us before? Check out our How To Vet BluWave video to learn more about us and how we can help. And if you have an immediate need, contact us here and we will be happy to help you right away.

Critical boutique pricing consulting firm need

Pricing consultant essential for value creation in portco

A PE firm vice president came to us with a critical need for a pricing expert that could help several of their portcos in the manufacturing industry. Facing pricing challenges such as trouble getting price increases from procurement groups and historical company cultures of not raising prices, the PE firm knew a pricing expert was critical in building value at these portcos. They were looking for a single-shingle pricing consultant or boutique pricing consulting firm with industry experience that could provide analytical support to the management teams as well as strategic planning.

BluWave has exact-fit provider with industry experience

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade pricing strategy needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of pricing consultants that uniquely meet the private equity standard. We interviewed the PE firm to understand their specific key criteria, and then connected the client with select pre-vetted boutique pricing consulting firms from our invitation-only Intelligent Network that fit their exact needs.

Firm engages consultant to address pricing issues and more

Quickly after the initial scoping call, the PE firm was introduced to three PE-grade boutique consulting firms with extensive experience in manufacturing. The client selected their ideal choice quickly and was very pleased with the outcome the pricing consulting firm provided. The PE firm was able to use the consulting firm to not only address the pricing issues, but identify the root cause of the problem, and train the sales teams in all portcos on pricing strategies.