Customer Type: PE Firms

Veterinary Business Needs Help with Complex Data Warehouse Software

Service Area: Technology

Client Type: Lower-Middle Market PE Firm

Service Provider Type: Business Intelligence & Analytics Firm

Industry: Technology – Software

The Need
Comprehensive Data Warehouse for Veterinary Business

The PE firm required a robust data warehousing solution for a new veterinary software platform under LOI. The project aimed to consolidate various data systems like CRM, general ledger, billing and payroll into a single warehouse for efficient reporting.

The Challenge
Integrating Multiple Systems into a Unified Data Platform

The primary challenge was integrating data from dozens of animal hospitals, each with local servers and different practice management systems. The firm needed a data warehouse that could handle various data sources and provide the capability for sophisticated data analytics and visualization.

How BluWave Helped
Identifying Business Intelligence, Data Warehousing Expert

BluWave utilized its extensive network to connect the client with a business intelligence and analytics firm proficient in healthcare data compliance and capable of setting up a full data stack. The chosen firm had to have the expertise to pull and visualize data from multiple systems while ensuring HIPAA compliance.

The Result
Streamlined Data Management and Enhanced Analytics Capabilities

The collaboration led to the successful implementation of a data warehouse that efficiently consolidated data from various systems. This new setup allowed for more sophisticated data analysis and visualization, providing invaluable insights into the veterinary business’s operations and finances, thus aiding in strategic decision-making across multiple portfolio companies.

Procurement, Sourcing Resources for Manufacturing Industry

January 12, 2024 Brad Gerick

Procurement and sourcing are critical components of manufacturing operations, directly influencing efficiency and cost-effectiveness. Fleet diligence, distribution assessment and supply chain management are among the more popular use cases BluWave sees.

We frequently field procurement and sourcing project requests from the manufacturing industry, giving us a deep understanding of the service providers that are best-suited to help private equity portfolio companies as well as private and public companies with these challenges.

Here are some of the top procurement and sourcing use cases and how they can help your business.

CASE STUDY: More Than $14 Million Saved on Resin Procurement for Plastics Company

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Fleet Diligence/Assessment

Effective fleet management is crucial for optimizing logistics and controlling costs. By regularly assessing fleet operations, manufacturers can uncover potential savings and improve transportation efficiency, which is essential for timely product delivery and overall operational agility.

READ MORE: What is Procurement & Sourcing?

Distribution Assessment

The efficacy of a distribution network plays a pivotal role in meeting customer demands and maintaining product flow. Thorough assessment of this network allows manufacturers to identify bottlenecks, streamline processes and enhance the speed and reliability of product deliveries.

Construction Diligence

Construction diligence ensures that manufacturing facilities meet all necessary standards and contribute to efficient production lines. This aspect covers everything from initial design to ongoing maintenance, directly impacting the effectiveness and safety of manufacturing operations.

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Asset Integrity Diligence

Maintaining asset integrity is vital for ensuring consistent production quality and avoiding costly downtimes. Regular checks and balances help in early identification of potential issues, enabling timely interventions and prolonging the life span of manufacturing assets.

Clinical Trial Operations Diligence

For manufacturers in the pharmaceutical sector, clinical trial operations diligence is key to ensuring product efficacy and safety. This process involves rigorous testing and compliance with stringent regulatory standards, directly impacting the success and credibility of products in the market.

Safety Diligence

Prioritizing safety in manufacturing not only fulfills regulatory requirements but also fosters a responsible workplace culture. Implementing rigorous safety protocols and regular training sessions can significantly reduce workplace accidents and enhance overall productivity.

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Process Mapping

Process mapping identifies inefficiencies in manufacturing operations, offering insights for improvements. By analyzing each step of the production process, manufacturers can make informed decisions to streamline operations, reduce waste and optimize resource allocation.

Facility Planning

Strategic facility planning is integral to maximizing production efficiency. It involves optimizing the layout and design of manufacturing spaces, ensuring that every element from machinery placement to workflow is conducive to peak operational performance.

Manufacturing Industry Resources

Packaging Diligence

In manufacturing, the importance of packaging extends beyond aesthetics to include functionality and protection. Ensuring the right packaging materials and designs can significantly reduce damages during transit and enhance customer satisfaction.

Supply Chain Diligence

A robust supply chain is essential for maintaining manufacturing momentum. This can be improved by supply chain optimization, focusing on vendor management, inventory control and contingency planning to handle disruptions effectively.

Procurement and sourcing are essential to manufacturing businesses. By working with experts who understand their business, manufacturers can enhance their operational efficiency and reduce costs that give them a competitive edge.

“You can engage a firm that can take out costs of your business for non-core expenditures,” BluWave Co-Head of Research and Operations Scott Bellinger says. “The beauty of it is these groups work off of a gain-share model, so they have an incentive to help you save money.”

BluWave’s research and operations team is here to connect you with specialized manufacturing resources. Set up a scoping call and you’ll get a short list of PE-grade option in less than one business day.

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IT Due Diligence: Technology, Software Industry

January 9, 2024 Brad Gerick

When a private equity firm is evaluating an acquisition target, they perform thorough due diligence before making any decisions.

One part of the due diligence process that tends to come later in the process is information technology (IT) due diligence. While important in any industry, this practice is particularly apropos for companies in the technology software industry.

“For companies that have kept up, they can have a significant competitive advantage,” BluWave Head of Technology Houston Slatton says. “But for companies that haven’t embraced technology or managed it well, it can become a liability or a risk to their operations.”

READ MORE: What is Commercial Due Diligence?

Due Diligence for Software Companies

What is the IT Due Diligence Process?

Here are the top-level steps involved with IT due diligence:

  • Preparation
  • Information Gathering
  • Asset Evaluation
  • Contract Review
  • Risk and Opportunity Identification
  • Recommendations

READ MORE: What is IT Due Diligence?

IT Due Diligence for Technology Software Companies

Here are how each of those steps could apply to due diligence being conducted on software companies:

Information Gathering

Gathering information is a rigorous process involving deep dives into the software’s architecture, databases and development practices. This phase assesses the company’s technical assets and the quality of its codebase, exploring aspects like scalability, maintainability and technical debt.

Asset Evaluation

In asset evaluation, the focus shifts to the software itself. What is the state of the product’s lifecycle? Are the technologies used up-to-date and supported? The evaluation also reviews the company’s intellectual property portfolio for patents, trademarks and copyrights that protect its innovations.

IT, Software Strategy Resources

Contract Review

The contract review scrutinizes agreements with customers, vendors and partners. For software companies, this could involve licensing agreements, open-source software dependencies and third-party integrations that are essential for the company’s products and services.

Risk and Opportunity Identification

Identifying risks requires an understanding of the regulatory environment, especially for data privacy and security. What are the potential compliance liabilities? Conversely, where are the opportunities for innovation or market expansion? This step often reveals how IT can be a growth enabler or a liability.

“If you don’t use the tools well – if you don’t maintain them – a good IT diligence report is going to highlight those issues, but also will highlight those as recommendations or opportunities to drive value in the business post-close,” Slatton says.

READ MORE: How To Hire an Interim CTO

Recommendations

The final recommendations are a strategic mix of immediate actions and long-term plans. For a technology software company, this might include advice on enhancing security, improving system integration or investing in new technologies to keep the company ahead of the curve.

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The IT due diligence process is integral to understanding the true value of a technology software company. It’s not just about identifying what works and what doesn’t – it’s about uncovering how the technology can drive the company forward.

Private equity firms that don’t perform thorough IT due diligence may find themselves facing unforeseen challenges down the line. But those that prioritize this step can use it to guide their investment strategy, uncover new opportunities, and ultimately, ensure that their acquisition is set up for success in the rapidly evolving tech landscape.

READ MORE: Why Mergers & Acquisitions Fail

For expert guidance through the IT due diligence process, reach out to BluWave. Our research and operations teams can connect you with the best IT due diligence experts in the industry, handpicked for your situation.

“The specialized providers in the Business Builders’ Network have in-house employees who focus on doing these types of assessments for investors,” Slatton says. “They’re seasoned technology professionals who know how to quickly assess an organization through the lens of private equity firms and other acquirers.”

Start a project with us today and we’ll provide a short list of service providers in less than 24 hours.

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Jay Hernandez of Raymond James: M&A Process Best Practices

November 15, 2023 Brad Gerick

Jay Hernandez recently joined the Karma School of Business podcast, sharing his insights into the dynamic world of private equity.

In his discussion with host Sean Mooney, Hernandez, an investment banker focused on industrial technology, talked best practices in mergers and acquisitions.

He emphasized the importance or preparation, understanding buyer psyche and building trust and reputation.

Here are some insights from their conversation.

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3 Takeaways from Jay

1. M&A Preparation

Hernandez emphasized the importance of thorough preparation before entering the market. This involves not just understanding one’s own business but also being ready for the intense scrutiny that comes with merger and acquisition processes.

“It’s never too early to prepare for that event,” Hernandez said. “You always have to be prepared.”

Mooney agreed: “The more you do that, the more luck you tend to have in business and life, but also M&A processes.”

READ MORE: Why Mergers and Acquisitions Fail

Hernandez also stressed the importance of talking to key players early in the process.

“Engage your advisors, engage your experts well in advance. And it could be even a year or two in advance,” Hernandez said.

Mooney said that doing so can ensure that all aspects of the business are aligned and ready for the sale process.

“You should probably be talking with an investment banker right now so that when that light is green, you’re getting an early start,” he said.

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2. Understanding Buyer Psyche

Hernandez also pointed out the increased depth and detail in buyers’ inquiries within M&As.

“The psyche of the participants has changed, and particularly on the buyers, and where that’s changed a lot is the areas that they’re digging into and the depth of which they’re digging into,” he said.

Mooney underscored the need for sellers to understand and anticipate the buyer’s perspective. He highlighted the diligence PE firms conduct in preparing for M&A processes.

“Private equity firms are spending more time making sure things are absolutely buttoned up so that they’re prepared to move as quickly as possible through an M&A process,” he said.

READ MORE: Merger Planning & Integration: Best Practices for Private Equity Firms

3. Building Trust and Reputation

Finally, Hernandez emphasized the necessity for buyers to maintain integrity and straightforwardness during the M&A process.

“You need to make sure that you’re doing it right for the company that you’re looking at, because at the same time, you’re going to be their partner going forward,” he said.

Mooney cautioned about the fragility of reputation.

“It takes a lifetime to build a reputation and literally 30 seconds to ruin it,” he said.

Hernandez added that “99.999 percent of the groups that we deal with and the buyers that we deal with are straight shooters and do exactly what they’re going to say.”

READ MORE: Post-Merger Integration: Framework, Keys to Success

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Hernandez’s entire conversation with Mooney offers unique insight into the world of mergers and acquisitions from an investment banking perspective. (Stay tuned until the end for a time- and stress-saving life hack about cooking the perfect steak.)

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

Revolutionizing Healthcare: Roles of AI, Machine Learning

November 14, 2023 Brad Gerick

The integration of artificial intelligence (AI) and machine learning in healthcare is poised to revolutionize the industry by enhancing efficiency, transforming medical education and augmenting the role of healthcare professionals.

The latest Private Equity Insights Report from BluWave shows strong interest in AI data analytics as well as robust activity in the healthcare industry.

LISTEN: The Window of Opportunity: Healthcare and PE Insights

Scott Becker, founder of Becker’s Healthcare and Partner at McGuireWoods, discussed these topics with BluWave CEO and Founder Sean Mooney on the Karma School of Business podcast.

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Neurology, doctor and planning surgery with tablet in office with x ray, results and patient data on tech for expert consultation. Cancer, research and black woman to study the brain or neuroscience.

Efficiency in Healthcare Processes

Becker’s insights into the role of AI in healthcare reveal a significant shift toward efficiency, particularly in areas like revenue cycle management.

He spoke to the remarkable reduction in workforce requirements.

“You’ve got places that have 1,500 employees. They can get down to 1,000 employees with using AI,” he said.

READ MORE: Healthcare Compliance: Due Diligence Checklist

This reduction is not about diminishing the human element but rather reallocating it. By automating routine and repetitive tasks, AI allows healthcare professionals to focus their expertise on more complex and nuanced cases.

This shift is not just a matter of numbers; it represents a fundamental change in how healthcare operations are managed. Becker elaborated on the challenges faced in staffing these roles.

“A lot of those jobs are relatively lower-wage jobs where the turnover was tremendous,” he added.

This also speaks to the importance of AI in creating a more stable and focused workforce.

READ MORE: How To Extract Data from ERP Systems

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Transformation of Medical Education

Becker also said that the medical education system is in dire need of an update.

“Medical school is still designed pre-internet,” he said. “A specialist isn’t out of school until they’re in their early thirties.”

This not only prolongs the training period but also imposes significant financial and mental burdens on aspiring medical professionals.

READ MORE: Professional Healthcare Recruiters: Specialized Human Capital Resources

“You’ve got this horribly inefficient medical school program and residency training program,” he added.

By leveraging artificial intelligence for educational purposes, the learning process can be significantly streamlined, reducing both time and cost for students.

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Augmentation of Medical Professional Roles

There are many use cases for existing medical professionals as well. Mooney offered one example.

“They’re going to have these amazing copilots that will help do all those kind of brain sequences,” he said.

READ MORE: AI Data Analytics: Business Intelligence Tools

Mooney views AI as a tool to assist, rather than replace, human expertise. AI’s ability to process vast amounts of data and identify patterns can significantly enhance the diagnostic process, allowing medical professionals to focus on critical decision-making and patient care.

“I don’t think you could ever turn them over to the robots, at least in our visible future,” Mooney added.

The integration of AI promises to elevate the quality of healthcare, making it more precise, personalized and effective.

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While the potential of AI in healthcare is immense, challenges such as resistance to change and vested interests could impede its adoption. Its future prospects, however, are promising.

The integration of AI and machine learning in healthcare represents a significant shift toward more efficient, effective and personalized care.

The invite-only Business Builders’ Network is full of AI experts who work with healthcare businesses on a regular basis.

Connect with our research and operations team, and they’ll provide a short list of tailor-made resources within 24 hours.

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Listen to all the episodes from the KSOB podcast.