VP needs buyside M&A advisory firm in healthcare sector
A LMM VP was looking to complete a critical buyside search and came to us looking for the top buyside M&A advisory firm. Having already explored their investment thesis for the past nearly nine months on a healthcare practice, they were looking for an expert in this sector. Their criteria included specific, deep PE experience and a preferable Midwest location. Since the PE firm was just beginning to fundraise, they were looking to begin working with this resource within the next week.
Measuring against specific criteria, BluWave identifies exact-fit M&A advisory firm
Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade buyside M&A needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of buyside M&A advisory 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 BluWave-vetted buyside M&A advisory firm from our invitation-only Business Builders’ Network that fit their exacting needs.
Firm engages with the PE-grade, industry specific provider
Within the same day of the request, the PE firm was introduced to a buyside M&A advisor firm that was an exact-fit service provider. Specializing in healthcare, this service provider had deep sector and PE experience. The client engaged with the provider and they were able to complete a market study on the target, in addition to advising the client on their investment thesis.
Managing director needs Voice of Customer research for target company
A middle-market PE firm Managing Director needed to perform Voice of Customer (VoC) research on an acquisition target that specialized in the SaaS space. Having just signed exclusivity on the potential new platform, time was of the essence and the firm wanted to quickly engage a consultant that specialized in B2B aggregate customer feedback. The PE firm had two weeks to complete this diligence work due to the LOI timeline.
BluWave identifies two pre-vetted, PE-grade providers
Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade VoC needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of VoC 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 the select BluWave-vetted VoC consultants from our invitation-only Intelligent Marketplace that fit their exacting needs.
Connecting to an exact-fit VoC Consultant, the research could begin immediately
On the same day the PE firm initially reached out, they were introduced to two exact-fit, BluWave-vetted VoC consultants that we had identified in meeting their exact PE, SaaS, and B2B experience criteria. The client selected their ideal choice and was able to immediately begin the VoC work with identifying which customers to interview, ensuring it represented a broad spectrum, and advising on the customer interview questions. The service provider was able complete the VoC research within the PE firm’s tight deadline.
PE firm has critical need for HR diligence provider for target company
A middle market PE firm partner approached us with an immediate HR diligence need for a software-based portfolio company that they had under LOI. The PE firm wanted to take their typical HR diligence efforts to the next level and were looking for a group that could look at the available HR information in the target’s data room, summarize weaknesses and gaps, identify any existing employment issues, and more. There was no formal HR team currently in place, and the PE firm was eager to have a team not only dig around and make recommendations pre-close, but also be able to come in and fix the gaps they identified post-close.
BluWave identifies PE-grade diligence group specialized in software companies
Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade HR diligence 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 the select BluWave-vetted specialized HR diligence providers from our invitation-only Intelligent Marketplace that fit their exacting needs.
Firm confidently engages with provider, gaining insight into target company
Within 48 hours of the request, we introduced the PE firm to an exact-fit service provider that specialized in performing HR diligence for PE firms evaluating software companies. The client quickly engaged the provider who was able to begin the diligence work within the next week. Thanks to their exact-fit background, the service provider was able to quickly gain meaningful insight into the company’s HR practices that gave the PE firm the information they needed to be confident in moving forward with the transaction.
Urgent data analysis needed to evaluate portfolio company
A LMM VP came to us with an urgent big data analytics need for a technology-focused portfolio company that they were evaluating. The PE firm recently retained access to some of the target’s transactional data sets and the size of them was overwhelming. They needed an expert with a strong analytics and B2B background that could take the data and create cohort analyses from it. With LOIs due in one week, they urgently needed a consultant that they could connect with pre-LOI so the consultant could then hit the ground running post-LOI.
BluWave has pre-vetted analytics consultant specialized in diligence
Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade big data and analytics needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of analytics 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 the select pre-vetted specialized consultant from our invitation-only Business Builders’ Network that fit their exacting needs.
Firm engages exact-fit data analytics consultant to immediately start project
Within the same day of the request, the PE firm was introduced to an exact-fit provider that specializes in analytics consulting during diligence. The client was engaged and was able to start the project immediately post-LOI. The provider was able to dedicate their resources to create a systematic method of creating meaningful analyses from the data sets and ultimately provide the client with the exact insight they needed.
Critical need for business analytics provider specializing in ecommerce sales
A middle market PE firm director came to us with an immediate need to optimize their portfolio company’s ecommerce sales via third-party platforms. With two of their primary sales channels being the world’s largest third-party ecommerce platforms, they knew they needed to optimize the opportunity that existed there. The PE firm and portfolio company were in need of a business analytics expert with a strong ecommerce background that could look at their third-party sales data and provide recommendations on how to increase the sales they made via these channels. They needed a provider that could provide holistic strategic recommendations that could be presented at the company’s board meeting in a couple of weeks.
Using our extensive network, BluWave identifies pre-vetted specialized provider
Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE- grade business intelligence and analytics needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of analytics advisors 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 specialized business analytics consultant from our invitation-only Intelligent Marketplace that fit their exacting needs.
Firm successfully connects to niche ecommerce analytics consultant
Within 24 hours, the PE firm was introduced to multiple, specialized service providers with the exact-fit niche ecommerce analytics experience they were looking for. The client confidently engaged with their selected consultant and was able to start the project immediately. The provider started the project by first understanding the client’s sales data that existed on these platforms and then began to draw insight on how opportunity in these channels could be optimized through key word optimization, product tagging, and more.
PE firm urgently needs to assess effectiveness of sales team at healthcare portco
A middle-market PE firm Partner came to us with a prompt need to assess the existing sales team and go-to-market strategy at one of their portfolio companies that provides medical equipment and asset management services to the healthcare industry. The founder-owned portco was struggling with a high turnover rate and urgently needed to examine how to get the right sales team members in place. They were also in need of a new GTM strategy that they could execute once they had the right team in place. Having previously completed Voice of Customer (VoC) work, portco leadership was ready to take the next step.
BluWave identifies PE-grade consulting firms specific to the firm’s needs
Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade sales effectiveness and GTM strategy needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of sales and GTM strategists 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 consulting firms from our invitation-only Business Builder’s Network that fit their exacting needs.
Firm engages with presented provider and moves forward to improve portco strategy
Within the same day of reaching out, the PE firm was introduced to a specialized sales effectiveness & training firm with additional experience developing GTM strategies for PE-backed companies. The client immediately engaged with this group and was able to start the project within 24 hours. The service provider we connected them with began by assessing the current sales processes and team members within the portco’s two verticals and then worked with them on developing an improved strategy.
IT due diligence needed for business analytics company
A LMM Founding and Managing Partner came to us with a pressing need to perform IT Due Diligence on a company they were evaluating. The target was a business analytics company that ingests POS data from retailers, analyzes it, and then shares actionable insights with their clients. Given that the crux of the company was being able to ingest and then transform data, the managing partner was urgently looking to understand the tech stack and the internal-facing software. They needed a due diligence provider that could scrutinize data architecture, identify areas for improvement in the tech stack, and had experience evaluating inward-facing software.
BluWave connects client to pre-vetted technology advisory firms
Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade IT due diligence needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of diligence consultancies 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 technology advisory firms from our invitation-only Business Builders’ Network that fit their exact needs.
Client moves forward with top choice and gains needed IT insight
Within the same day, the PE firm was introduced to two select best-in-class technology advisory firms that specialized in IT due diligence for PE-backed companies. The client selected their preferred choice and started the project the next day. The PE firm was able to successfully engage the advisory firm and gain the IT information they needed in order to make an informed decision.
Interim CEO with manufacturing expertise needed to help grow business
A principal at a LMM PE firm approached us with a critical need for an interim CEO with deep manufacturing expertise. Having held their manufacturing portfolio company for a full year, the firm was looking to bring in a new CEO in order to transition the old one out and grow the business. They had been searching for months for a replacement CEO but had not found one that fit their needs, so they were now in urgent need of an interim to help facilitate the transition of the old CEO while they kept searching for a permanent replacement. They needed an interim CEO as soon as possible that had knowledge of both standardized and customized machining processes and lean six sigma expertise.
Understanding the firm’s specific criteria, BluWave identifies pre-vetted interim CEOs
Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade interim CEO needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of experienced CEOs 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 CEO candidates from our invitation-only Business Builders’ Network that fit their exact needs.
The firm engaged the CEO to improve the company’s business operations
Within 24 hours of the initial scoping call, the PE firm and portfolio company were introduced to a PE-grade interim CEO candidate that had years of PE-sponsored experience in manufacturing. The client was able to successfully bring in the interim within the needed timeframe to transition the old CEO out, make business improvements, and lead as well as improve their operations until the permanent hire could be made.
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 how scarcity and inflation are impacting human capital in PE as well as how firms are approaching finding opportunities in a choppy market. We’ve 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? Register here.
Scarcity and inflation impacting human capital: One of the unsung areas where inflation is impacting the economy the most is human capital.
Firms are taking a closer look at culture to increase retention and not just thinking about wages, but the total employee experience and related rewards.
Investments are being made in portco HR (CHROs, VPs, Directors) to collaborate with marketing functions on recruiting content to promote the benefits of an organization beyond dollars per hour. Portcos are also utilizing their current staff to recruit and network with candidates, such as incentivizing them with referral bonuses.
Another interesting concept is building in-house training programs to grow net-new talent pools instead of taking and losing employees to and from competitors.
Finding opportunities in a choppy deal market: The confluence of rising interest rates and geopolitical pressures are causing the deal market to become increasingly choppy. Firms are looking for ways to find opportunities in the face of risk and rising recession risk.
Teams are getting creative in deal sourcing by exploring new channels by moving down-market and supplementing with add-ons, focusing on proprietary or limited process situations, looking for failed auctions, and continuing to build new relationships.
It’s becoming increasingly necessary to be mindful of quality when selecting which deals to pursue and heightened diligence in underwriting, particularly when modeling downside scenarios. This has become even more important as we’ve seen multiples climb higher and higher over the past 12 months. Deal teams are adding extra layers of scrutiny to verify that businesses are valued at a level that will be appropriate over the coming foreseeable months.
Teams are spending significant time exploring targets’ operating leverage to understand performance in downside scenarios.
A number of firms are seeing an economic reset as an opportunity to find unique opportunities to potentially get quality assets at lower multiples, gain market share, and/or consolidate markets as weaker competitors seek safety and circle wagons.
We thoroughly enjoyed getting to gather with PE VPs to discuss these current industry hot topics. We’d be happy to connect you to the PE-grade, exact-fit, third-party resources you need to assist you in this pressurized market, just contact us here.
Learn more about how we can specifically help Deal Quarterbacks and access a toolkit that can help you do your job more efficiently here.
An interim CHRO was needed during a multi-business merger
A principal at a middle market PE firm came to us with a vital need for an interim CHRO for their new global consulting platform that was a merger of 3 companies. The platform was closing in 3 to 5 days, our client needed the interim CHRO as soon as possible. They needed an individual to lead the merging of the new platform’s three HR departments into one. The key swimlanes included:
Advising on future state systems
Developing an end-to-end solution for a comprehensive compensation and benefits plan for 100+ employees
Organizing their Human Resources Information System selection process
Migrating off their professional employer organizations
We quickly collected the specific requirements for the interim chief revenue officer from our client
Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade interim chief human resources officer 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. After that, we connected the client with the select pre-vetted interim CHRO candidates from our invitation-only Business Builders’ Network that fit their exact needs.
Interim CHRO hired to lead the talent portion of the merger
Twenty-four hours after our initial scoping call, we introduced the PE firm and portfolio company to two PE-grade HR executive candidates. Both of the candidates had relevant functional, geographical, and middle market PE firm experience. After meeting with each of the candidates, our client selected their ideal choice. The interim executive was onboarded within the needed timeframe and successfully managed all HR aspects of the merger.
ACG InterGrowth 2022, known as the premier dealmaking conference, was conceptualized to build and strengthen relationships between private equity firms and investment banks. This annual conference allows PE industry leaders to gather and discuss key trends. Last week was filled with cybersecurity, DE&I, and supply chain thought leadership conversations, plus some Las Vegas style poolside networking.
As hundreds of private equity professionals and investment bankers filled the ARIA Resort & Casino from April 25-27, 2022, our team was able to re-connect with familiar faces as well as meet new ones.
“You could feel the eagerness to be back in person the moment you arrived. From founders to deal teams to business development professionals, the atmosphere was engulfed by ideation and excitement,” says Michael Mahan, BluWave Account Management Director.
Here are some of our team’s top takeaways from our largest conference back in person:
Quality Deal Flow Challenges
PE firms broadly shared that activity is slower compared to last year at this time. Our data confirms this as due diligence projects have declined YoY, from 28% of the BluWave Activity Index in Q1 2021 to now 22% in Q1 2022. While overall deal flows are beginning to increase, deal teams expressed that quality deals are hard to come by.
Lights, Deals, Action!
While ‘digital transformation’ remains a top buzzword, we know that top-performing, proactive PE firms and their portfolio companies are looking to transform their businesses, not just optimize them. Industries such as manufacturing and supply chain are dependent on new technologies to scale growth and meet the industry demand post-pandemic.
Market Differentiation
Building brand equity to differentiate your firm is important in today’s crowded landscape. With less quality deals in the market, it is mission critical for firms to remain top of mind with investment bankers. PE firms are finding creative ways to do this through utilizing specialized resources that can help them with their internal branding, & more.
ACG InterGrowth 2022 exceeded our expectations, and it was great to have the opportunity to connect with so many individuals in person. If you were unable to attend the conference, but are interested in connecting with us, contact us here.
BluWave Account Manager Morgan Murphy concludes, “This year’s conference was instrumental in continuing to build our relationships with PE firms face-to-face. Until next year!”
