PE Firms Archives - Page 39 of 45

Interim CHRO Needed to Quickly Spearhead Departmental Change

Firm needs interim CHRO for multi-site portco

A PE firm came to us with a critical need for a head of HR for their multi-location healthcare services company. With the current head of HR leaving and an ineffective HR department, the healthcare services company needed a strong HR leader with role and industry expertise to come in and restructure the entire system in 3-6 months. Already with ~1000 employees and additional acquisitions on the horizon, they urgently needed a local interim CHRO leader that could be boots on the ground in HQ during the pandemic in order to quickly spearhead change.

BluWave presents PE-grade interim executives with industry expertise

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade interim CHRO needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of experienced HR leaders 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 interim CHRO candidates from our invitation-only Intelligent Network that fit their exact needs.

Firm selects top choice to serve as interim CHRO

Quickly after the initial scoping call, the PE firm and portfolio company were introduced to four PE-grade interim CHRO candidates that specialized in healthcare services. The client selected their ideal choice, allowing them to quickly retain this critical role without wasting time or cost. The candidate ended up being such a great fit thanks to their background in M&A, PE, and healthcare, that they were flipped to the organization’s permanent position after only three months of serving as an interim resource.

Interim talent means more equitable environments for the future of work

July 14, 2021 Katie Marchetti

As the chaos and uncertainty around the pandemic starts to settle and businesses dust off the debris of the last year, it’s becoming clear that a new world of work is upon us. What many were predicting would soon be the “new normal” is now the actual normal—especially when it comes to work. The transition back into physical office spaces does not mean the end of remote work. Instead, companies are embracing a hybrid workforce.

Hybrid work combines virtual and onsite employees, whether on alternating days or on a permanent basis, and is a trend that companies are embracing across the country. A recent report from Gartner revealed that 59 percent of companies intend employees to work remotely occasionally, while 32 percent are allowing remote work full-time. For many leaders, however, this now means transitioning again into a new working style: one that facilitates productivity and collaboration among in-office and virtual workers (think: all-hands meetings with half the team sitting together at a conference table and the other half calling in from Zoom).

This is why project-based work is on the rise. Instead of onboarding full-time employees remotely, which has been one of the biggest challenges for HR leaders during the pandemic, companies are calling on skilled experts to complete tasks on a contractual, as-needed basis. As we drive ahead in the new normal, project-based workers will be fueling the future of work.

Project-based work is an integral part of a successful remote workforce

Across the 1,000-plus private-equity-based projects BluWave supported in the last 12 months, one thing stood out: investments in people continue to be the number one focus area in 2021. While technology has helped companies to adapt to remote work, hiring employees who have the skills to work with the technology has been even more valuable.

Hiring workers for specific, often discrete, projects means you can vet candidates based on their ability to meet the demands of that project. Using an Intelligent Talent Network can help you match potential interim workers to those interim needs. This model works well for private equity firms, from senior partners to portfolio company executives, because it engenders trust and rewards results. If you hire people who are skilled, action-oriented, and self-motivated, you can set goals and give them “rope” to freely deliver the best result. Ultimately, project-based work ensures that rewards are aligned and incentives are rewarded in exchange for top performance, which is more difficult to achieve with a more amorphous scope.

Interim work means more equitable environments

Hiring based on a potential employee’s ability to perform against predetermined, outcomes-based objectives helps eliminate bias (unconscious or not) in the recruitment process. According to Harvard Business School, “In recruiting … unconscious bias and affinity bias often express themselves as a preference for one candidate or another because of ‘culture fit.’ Resumes may be selected because of a shared alma mater, or because of an unconscious bias to one name over another.”

When hiring for a long-term fit, companies may choose to give preference to candidates who meet unspoken criteria off-paper—because culture-fit and soft skills are generally more relevant for full-time employees. With project-based work, it’s the results that matter. If someone has a track record of success, they meet the criteria. It’s that simple. Plus, in this system, rewards are made equitable, too. If your project scope is clear, you can offer fair and just compensation for the work that is done—it provides equality of opportunity to perform.

Creating collaborative environments with distributed workers

The key to effectively utilizing project-based workers is putting the right systems in place to seamlessly integrate them into the existing processes and work efficiently across project stakeholders for the duration of their contract.

Clearly defining and communicating goals from the onset, delineating established deadlines, and integrating collaboration tools into operations will help leaders stay on top of a project. These are hallmarks of agile development, which involves short, project-to-project scrums with siloed teams that collaborate consistently through the scrum. Research has shown that agile teams are 25 percent more productive than their industry peers because team members focused on one task at a time.

You can also implement clear structures for assigning roles and accountabilities. A RACI chart is a tried-and-true matrix used to assign roles on a project. A properly used RACI outlines who is responsible for executing tasks, who is accountable for the work, who is consulted throughout the project, and who is informed on project progress. This helps eliminate confusion, reduce duplication or redundancy, and ensure those deadlines are met.

For a workforce still in flux, those equipped for project-based work act as connective tissue and can build the foundation for future stability. Companies that embrace this wave of “normal” will likely be the ones that ultimately find themselves in a winning position.

This article originally appeared in HRFuture Magazine.

Interim CFO Urgently Needed after Abrupt Resignation

Firm has immediate need for PE-grade interim CFO

A PE firm came to us with an immediate need for an interim CFO for their automotive aftermarket company. With the existing CFO transitioning out within two weeks after an abrupt resignation, they needed to act fast to find a replacement. Not having the time to sift through candidates, they critically needed a candidate from a focused set of referenced, PE-grade interim CFOs that understood the automotive aftermarket and the nuances to the complex accounting and financials associated with this type of organization.

BluWave connects firm with in-network, pre-vetted interim executives

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade interim CFO needs. BluWave utilizes technology, data and human ingenuity to pre-map, assess, monitor, and maintain deep pools of interim CFOs 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 candidates from our invitation-only Intelligent Network that fit their exact needs.

Firm engages their top choice to fill the role

Within 24 hours of the initial scoping call, the PE firm and portfolio company were introduced to the first candidate that had CFO experience in the automotive aftermarket industry. After a series of interviews, the client selected their ideal choice that was able to start immediately and was open to converting to a full-time role. Because the candidate was such a perfect fit, the PE firm decided to convert them to full-time from the get-go. They were able to drive an excellent outcome by quickly retaining this role without wasting time or cost.

June 2021 Roundup: BluWave Private Equity Client Insights

July 7, 2021 Kyle Johnson

BluWave works with over 500 PE funds from around the globe, connecting them with pre-vetted, best-in-class, interim executives and small groups across a variety of resource and functional areas. From information technology and manufacturing to healthcare and consumer goods, our clients are paving the way for “Industry 4.0.” 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 funds.

Baird Capital’s venture team partner, Benedict Rocchio, was tapped for a Crain’s Chicago Business roundtable on the future of work. In this recap, he shares his thoughts on “solutions, strategies, and resources shaping the future of work and what business leaders should anticipate for their organizations.”

How we did it: Pricing strategy expert needed to drive demand for consumer products portco

June 30, 2021 Kyle Johnson

A PE firm came to us with a critical need for a pricing strategy expert to maximize revenue at one of their consumer products portfolio companies. Since competing against big-box retailers, the portco realized their need to set pricing that clearly conveyed the value of their offerings to their price-conscious and value-driven consumers. We quickly worked to understand the client’s nuanced needs, leading us to promptly introduce them to two PE-grade pricing strategy experts with extensive experience in the consumer products industry. The client selected their ideal choice, and the PE fund was able to achieve its objective of maximizing response rates and demand through strategic pricing and an aggressive seasonal promotional schedule.

Do you have a similar need or any other specific need we can help you with? Contact us here and we will be happy to help you.

Read the full story here.

Pricing strategy expert needed to drive demand

Firm needs pricing strategy expert for consumer products portco

A PE firm came to us with a critical need for a pricing strategy expert to maximize revenue at one of their consumer products portfolio companies. Since competing against big-box retailers, the portco realized their need to set pricing that clearly conveyed the value of their offerings to their price-conscious and value-driven consumers. They set this objective as a top priority and urgently needed a PE-grade pricing strategy expert that had experience in the consumer products industry and could set a pricing and promotion strategy to maximize response rates and demand.

BluWave identifies top pricing strategy experts for industry

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-focused strategic consulting firms 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 pricing strategy experts from our invitation-only Intelligent Network that fit their exact needs.

Firm engages ideal choice to maximize response rate and demand

Quickly after the initial scoping call, the PE firm and portfolio company were introduced to two PE-grade pricing strategy experts that specialized in the consumer products industry. The client selected their ideal choice. The PE firm was able to confidently drive an excellent outcome without wasting time and opportunity cost and the portfolio company was able to quickly achieve its objective of maximizing response rates and demand through strategic pricing and an aggressive seasonal promotional schedule.

How We Did It: Head of Sales needed to drive value at a recently acquired portco

June 23, 2021 Sean Mooney

A private equity firm principal and portfolio company CEO came to us with a need for a Head of Sales for their healthcare logistics company. Since the acquisition, the portfolio company had been growing rapidly, and they needed to make key hires across multiple functions. Moving quickly, we worked to thoroughly understand the client’s specific needs. We introduced them to two sales recruiting firms that specialized in senior go-to-market roles in the healthcare space. After a thorough vetting process, the CEO made a decision and hired one of the candidates presented. To date, the partnership is a success and going smoothly.

Do you have a similar need in the interim exec area or any other unique need we can help with? Contact us here and we will be happy to help.

For the full story click here.

Video: Dealing With Service Providers at Capacity

June 18, 2021 Kyle Johnson

As the world begins to rapidly reopen from the pandemic, businesses have begun to run full steam ahead to catch up for lost time. This massive acceleration in business has left many go-to service providers in the PE industry at capacity due to the sudden surge in demand, leaving many firms wondering where to go next.

In situations like this, hundreds of the leading PE firms have come flocking to us, knowing that we can provide them with alternative providers through our extensive Intelligent Network.

Our Intelligent Network boasts the characteristics of both having a deep bench of PE-grade service providers and single shingle consultants.

In times like this, our broad list of resource partners allows us to keep a pulse on different providers’ availability, leaving firms with more time to focus on other initiatives while we determine what providers are available for them.

Additionally, our PE-grade single shingle providers empower our clients to find the same quality services they are accustomed to with their go-to providers, but for a much better value.

In the video below, former PE Partner and Bluwave Founder and CEO, Sean Mooney, shares his top three tips on what to do when your go-to resources are at capacity.

If we can help you connect with alternative providers during this capacity shortage, or help you with any other need, please contact us at info@bluwave.net and we will be happy to connect with you right away.

Women in PE Event Recap

June 18, 2021 Kyle Johnson

Every quarter we gather leading women in PE to discuss current industry topics and to offer smart women the chance to gather, share intel, 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 leading PE professionals during our next Women in PE Forum on September 15th? Please contact us at events@bluwave.net.

Deal Flow

Panelists and table participants agreed that the current flow of deals is historic in number, but reflective of years past, particularly past-recession and pre-tax changes. Funds are constrained by tight timelines and increased competition, higher price multiples, pressured budgets, and true scarcity both from diligence providers and internal fund capacity.
Funds have addressed this by focusing on deals they can win or where they have a unique angle for a seller. Some are even contacting banks in advance of the process with a pre-deal offering. When a “wanted” deal is identified, funds are full-court-pressing management team (including in-person meetings) and putting resources against it. Relationships with diligence providers have become more important than ever due to capacity constraints. When go-tos are not available, funds are taking the opportunity to try new providers identified through BluWave—connecting funds with specialized groups for a certain industry or geography.
Internal capacity constraints are real, as is junior professional burnout. Funds are leaning into the softer side (happy hours, team outings, etc.) to curate a sense of team and community, helping juniors feel tied to their firm and preventing turnover.

Holding Periods and Potential Tax Change Impact

Funds are trying to balance the opportunity to sell at significant multiples in this market, weighing the balance of higher short-term IRRs versus greater multiples of money with longer hold periods. Additionally, potential tax changes loom, encouraging companies to sell before the potential becomes a reality. BluWave is hearing from our contacts in DC that a changed capital gains rate will likely land at a lower rate than being proposed by the administration in the form of a compromise.
Few PE firms seem to be making firm-wide changes from a holding period perspective due to the impact of potential tax changes. That said, tax changes are pushing private owners (in an unprecedented way) to look at selling, amplified by the pent-up demand from the delayed covid period. Even 20-30 yr old industrials companies are considering sale for the first time.

Other Industry-Wide Observations

Travel: Flights are packed, and travel is generally more “pleasant” from a hospitality perspective—hotels being genuinely eager to please! That said, travel itself is more difficult due to limited flights, making the options more limited and forcing prioritization exercises. Annual meetings are split between remaining virtual (higher turnout) and in-person (more collaboration/relationship-development). The consensus on board meetings is that they will likely be ½ virtual and ½ in person.
In-office: Offices are coming back, depending on the region, though all will be in the “new normal” mode by Labor Day. In general, most firms seem to be at least partially virtual for the foreseeable future, and there is a trend toward a more casual dress code—notably involving more color!

We thoroughly enjoyed getting to gather with other leading women in PE to discuss these current industry hot topics. Here at BluWave, we are specialized to help you find service providers when your go-tos are at capacity.

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.

An Interview with Riveter Capital Founder Colleen Gurda

June 15, 2021 Sean Mooney

Anyone who has spent a significant amount of time in the private equity industry understands how difficult it is to “disrupt” the space. This has less to do with a lack of desire and more to do with the heaviness of the lift: being an innovator or a market leader is not for the faint of heart. But as we are discovering, after a year that rocked the globe and upended many aspects of our lives, now is the time to make strides and truly challenge the status quo.

For Colleen Gurda and her partner Sarah Abdel-Razek, they embraced the economic contraction and shifting tides of 2020 by founding New York-based fund, Riveter Capital. Passionate about supporting women and minority-owned or –led businesses in the lower middle market, they built their thesis around this underserved demographic and are on the hunt for quality founder- and family-owned businesses to partner with.

Case in point: When I hopped on a call to discuss everything from entrepreneurship to diversity to fractional talent, Colleen opened with: “It’s a little hectic today, we have three LOIs going out, so I’ll talk fast.” Her enthusiasm and passion are clear, and I have no doubt you’ll find her take on the future of PE to be filled with hope, realistic insights, and food for thought.

Sean Mooney: What was the genesis of Riveter?

Colleen Gurda: Having spent the majority of my career in a male-dominated industry, I knew the specific challenges many women in positions similar to mine faced—as well as the opportunities to do things differently. I’d been thinking about how I could combine my passion for women in business with my skillset, so when the pandemic hit and all these businesses owned by women and minorities were being disproportionately affected, I knew it was time to make the jump.

Women represent so many small businesses, but they don’t have access to capital. My partner and I saw a huge market gap in the PE world for these types of businesses in the $1M to $5M EBITDA range. We essentially close the “access to capital” gap, while realizing good returns for our investors.

SM: How did you overcome any “fears” about stepping out on your own and becoming an entrepreneur?

CG: I’ve always had an entrepreneurial itch but wanted to make sure I had the experience and credentials to be successful. After 15 years of investment banking and investing experience, I finally felt like I had the necessary tools to go out on my own. Having a partner in crime (Sarah) was also really important—both of us had the same vision yet complementary skillsets and the mutual support made the decision much easier.

Beyond that, during my years at other investment firms, I saw my peers moving upmarket only. So, I knew, from a competitive perspective, there was a chance to do smaller deals but have an outsized impact. The path to revenue growth was wide open and not oversaturated; this gave Sarah and me the confidence to test the thesis without the cost of having to outpace a lot of competition.

SM: You invest in minority-owned/managed businesses, but can you talk a bit more about your criteria for choosing companies in which to invest?

CG: Our core focus is women– and minority-owned and/or managed businesses. Right now, we are focused on companies with $10M+ revenue with $1M to $5M EBITDA in the areas of business services, manufacturing, consumer/retail, and healthcare services—although that will likely expand in the future. We are mostly interested in buyouts, founder ownership transitions, recapitalizations, growth and acquisitions, and rollup strategies. Beyond the leadership criteria, we look for fairly standard industry things like proven business models in stable industries, a strong value proposition, high free cash flow, and an identifiable value creation plan.

SM: Any examples of how a company you’ve been involved with saw positive economic impact by leaning into the idea of building a diverse workforce?

CG: We were recently involved with a waste management company specializing in waste collection, processing, and recycling. The organization had very little diversity on the teams, particularly in leadership positions, and no formal HR strategy. Our investment thesis was to formalize all policies and procedures, then top grade the management team. After implementing our suggested changes, the company attracted a more diverse workforce, which in turn embraced the ‘professionalization’ of the company. This included the way the company related to and communicated with its diverse customer base. As a result, the company improved its margins, increased customer retention, and was better positioned to win larger contracts from commercial customers.

SM: For middle market companies, why is access to fractional executives or specialized groups important?

CG: What we often see in the lower middle market are resource-constrained companies that can’t afford to build out a full team, or simply don’t have the bandwidth to manage growing their teams formally. At these companies, the CEO is also the COO and CFO, and probably more. Having access to episodic, expert teams and people is imperative for their growth.

Companies, like BluWave for example, allow us to bridge the skill gap until our portfolio companies are ready to hire full-time executives.

SM: What is one goal you have for 2021?

CG: As a fund, our goal is to prove the Riveter thesis, given there aren’t many (if any) firms out there doing what we are doing. We want to prove that there are really high-quality women– and minority-owned or –led businesses worth investing in, and that good returns are possible by looking at these largely underrepresented groups. While we do enjoy the fact that there isn’t much competition yet, I hope we inspire other investors to start thinking outside the box.

Video: How To Vet BluWave

June 14, 2021 Kyle Johnson

When you are evaluating external help to get you and your fund the resources you need, there are a number of questions you should ask, including:

What does your business focus on?
How many PE funds do you work with?
How many projects have you done with PE funds?
How do you know a service provider is PE-grade?
How long does it take to get results?
Why your business over any alternative options?

In this video, our team answers each of these questions. Watch to learn more!

Top 8 Best Practices for Preparing for a Value Maximizing Sale

June 11, 2021 Sean Mooney

In today’s competitive markets, private equity companies and their partners are being forced to pay record-high prices for investments in companies. To generate attractive returns, the private equity companies and their managers must create substantial value after closing. One effective way to create value is by running a highly prepared, efficient, and focused sales process. Here are eight best practices for preparing a company for a value-maximizing sale:

Run fast
Time is the enemy of any business sale process. It gives interested buyers the opportunity to overthink diligence items, get bogged down in excessive analysis, and find reasons why they shouldn’t pay the most full and fair market price.

It also extends the opportunities for customers, suppliers, and competitors to discover that your company is in a sales process, which can lead to myriad distractions and unforeseen consequences. From the day your investment banker sends out teasers and a confidentiality agreement, your goal should be to sprint to the finish line.

Perform diligence on yourself
One of the biggest things that can bog down a sales process is when interested parties discover aspects of the business that are different than those represented in offering materials. Not only does this slow the process down, but it also gives counterparties the opportunity to re-negotiate price and terms, often late in the process when the seller’s relative power in the process can diminish.

To avoid this, it is well worth the time and money to do diligence on yourself. Hiring quality of earnings advisors, tax advisors, and even market sizing, competitive landscaping, and IT consultants to do pre-diligence will give you much more confidence going into a process that you won’t encounter a surprise that could impact time and value. Additionally, many of these pre-diligence service providers will enable you to share their findings with interested parties, which will ultimately help you run an even faster and more certain process.

Be prepared to answer key questions
Almost all interested buyers will want to know (i) revenue and gross profit by customer and product over time, and (ii) detailed statistics regarding the size of your addressable market and your related market share. It will be to your benefit to stay prepared with these detailed answers before you start a business sale process.

If you’re not prepared, it is likely that buyers will insist that you take the time to prepare such detailed analyses. Taking the time to do them in the middle of a process is often very distracting, stresses internal resources, and slows down processes at the exact time you don’t want to be slowing down.

Organize your files
Interested buyers are not going to part with substantial sums of money to buy your business without doing comprehensive due diligence. This includes very detailed reviews of nearly every financial report and contract that is relevant to your ownership period (and likely even beyond your ownership period). Take the time in advance to organize all your contracts and financial report and summarize the key terms of all meaningful contracts. Your sponsors, investment bankers, and attorneys will give you guidance on where to focus your attention.

Hire high-quality investment bankers
Investment bankers are experts at maximizing value in the marketplace. The best investment bankers not only know how to pitch an indicative valuation and run a broad process, but also have pre-established relationships with the relevant buyers for companies like yours and an understanding of how your company could or should fit into the strategies of the most likely buyers. Hiring the right investment bankers almost always pays for itself.

Hire high-quality attorneys
Just like investment bankers, hiring the right attorney can add significant value to your sale process. It is more than likely that your buyer will have a highly capable attorney that solely focuses on mergers and acquisitions transactions.

You should also have a highly capable attorney who can adeptly negotiate prevailing market terms and efficiently and effectively protect your interests from liabilities that survive after the initial closing. A good attorney should also know what’s important and not try to win every point in your favor. An M&A transaction involves a lot of give and take. The best attorneys know that intelligent compromise is needed to close a deal.

Polish your presentation
Interested buyers aren’t just buying a company; they are buying the management team. It is imperative to have strong contributions from each of the key members of the management team. Presenting canned PowerPoint presentations, however, is not necessarily the day job of your functional area leaders. Practice, practice, and more practice is critical.

Private equity sponsors and investment bankers also serve as great sounding boards and fountains of feedback and advice as they participate in these types of meetings on a regular basis. There are also professional management meeting presentation advisors that can add tremendous value by giving arms-length feedback and advice free of natural bias that occurs with your existing relationships. We know some really good, PE-tested presentation coaches if you need this type of resource.

Staff up
Preparing for and managing a business sale process is an unbelievable amount of work. Your company is not staffed to manage this level of surge demand. Most of the workload typically falls on the finance staff. Hiring interim staffing to support this surge demand is tremendously valuable in terms of making sure that information requests are met in a timely manner and your company continues to run as well as possible during a trying time.

Moreover, the costs of these interim support personnel are relatively minor as it relates to the total transaction value and can typically be allocated as transaction-related add-backs and closing expenses. BluWave has this world mapped and can quickly pair you with the right group or person to support your finance staff during this critical time.

After working feverishly for years on building and growing your company, the sale process is your final opportunity to monetize the full value of your company for the benefit of you, your team, and your investors. Take every opportunity to prepare in advance, bring in strong advisors and business support resources, and run a fast, competitive sales process so you can optimize the outcome of a rarely-occurring cornerstone event.