PE firm needs IT due diligence provider to assess target company
A managing director came to us with a critical need for an IT due diligence provider to assess a target company in the manufacturing industry. The portfolio company was a multi-site signage company focused on design, project management, and manufacturing. The managing director needed a provider located in the southeast who could assess scalability and risk with industry-specific technology while also having excelled in prior work with PE firms.
BluWave identifies IT diligence provider with specific manufacturing knowledge
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 the select pre-vetted service provider from our invitation-only Intelligent Network that fit their exacting needs.
Firm uses diligence provider to properly evaluate target company
Within less than 24 hours of the initial scoping call, the PE firm was introduced to the exact fit, PE-grade diligence provider that specialized in assessing manufacturing-related technology. The client engaged the provider we presented them with and was able to confidently evaluate the target company and gain the insights they needed.
I get asked a lot of questions about how to build a business, and how to do it with as few headaches as possible. Not that I’ve totally figured it out, but I’ve certainly made my fair share of missteps and gratefully have learned something along the way. From investing, to hiring, to reducing headcount, to managing the ups and downs of an economic recovery period—one thing remains unchanged: leadership matters. And if you’re talking about key leadership positions, the one that companies most often get wrong is the CFO.
Why? Well, the answers are as varied as the reasons they fail, but it generally has to do with asking the right questions from the beginning. In other words, the interview process is often to blame.
I wrote an article for CFO Magazine about “hiring the right interim CFO” and how to ensure you set your company up for success when it comes to hiring one of the most important positions. Whether you are looking for an interim CFO (who can move into a full-time position) or looking for a full-time financial executive, here are some things you should know before you greenlight your new hire:
8 Things To Know Before Hiring An Interim CFO
If you are a PE-owned company and need to bring in a short-term finance chief, find someone who has worked for a PE-backed company before.
The interim executive needs to have a track record of wins. That generally means a significant tenure at multiple companies.
Find someone with industry experience, because it’s much easier to stand at the finance helm of a manufacturing, healthcare, IT, or services company if you’ve done it before.
Similarly, the interim CFO should have experience working for a company of similar size and scale.
It’s not enough to understand the numbers (sales, revenue, overhead) — you need someone who understands what the numbers mean.
For the best results, find a pro who has a high IQ and a high EQ (emotional intelligence), because the interim CFO needs to quickly gain favor from others in the organization to gather information and build a story around the numbers.
Be sure to have conversations with key stakeholders in a candidate’s prior roles. Choose the references; do not use the references the candidate gives.
While enthusiasm is a wonderful aspect of a new leader, a short-term executive should have a stabilizing effect, not a disruptive one.
For more details and to read the full article in CFO Magazine, click here.
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.
