Value Creation Archives - Page 19 of 28

Data Warehouse Types: How To Choose the Right One

February 24, 2023 Brad Gerick

A data warehouse is an essential tool for businesses that need to manage large amounts of data. With the advent of big data, data warehouses have become even more critical for making the right data-driven decisions.

But with so many different types of out there, it can be tough to figure out which one is the best fit. Having an expert service provider help with the process can save you a lot of time.

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Let’s discuss the different types of data warehouses: enterprise data warehouses, data marts, virtual data warehouses, operational data stores and cloud-based data warehouses.

We’ll also explore the pros and cons of each type and give you some tips on how to choose the right one.

Different Types of Data Warehouses

1. Enterprise Data Warehouse

An enterprise data warehouse is a centralized repository that stores all the data for an entire organization. It’s designed to handle large volumes from multiple sources and provides a single source of “truth.”

One of the benefits of an enterprise data warehouse is that it can integrate data from multiple sources and provide a comprehensive view.

This makes it an excellent choice for companies that need to analyze large amounts of information from different sources.

Three examples of companies that might use an enterprise data warehouse are:

A large retailer that needs to analyze sales data from multiple locations and sales channels.
A healthcare provider that needs to consolidate patient data from different locations and systems.
A financial institution that needs to integrate data from different divisions, such as banking and investment services.

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2. Data Mart

A data mart is a subset of an enterprise data warehouse that is designed to serve a specific department or business unit within an organization. Data marts are typically smaller than enterprise data warehouses and are used to address specific needs.

The upside of a data mart is that it can be designed to meet the needs of a particular business unit or department. Organizations that need to analyze data at a more granular level would be well-suited for this option.

Three examples of companies that might use a data mart are:

A sales team that needs to analyze data related to customer orders and purchase history.
A marketing department that needs to analyze data related to customer demographics and purchasing behavior.
An HR department that needs to analyze data related to employee performance and retention.

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3. Virtual Data Warehouse

A virtual data warehouse is a logical view that is created by combining data from multiple sources. The idea is to provide a unified view without physically consolidating the data.

That’s one of the primary benefits of going this route – the ability to keep the data separate physically.

If you need to analyze various disparate sources of information in one place, consider a virtual data warehouse.

Three examples of companies that might use a virtual data warehouse are:

A company that has multiple databases with different types of data and wants to create a unified view without physically consolidating the data.
A business that wants to create a data warehouse without investing in physical hardware.
A company that wants to test a data warehouse concept before investing in a physical data warehouse.

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4. Operational Data Store

An operational data store provides real-time data for operational reporting and analysis. It’s optimized for write-intensive applications, such as transaction processing systems, inventory management systems and order management systems.

If you need a real-time look at your data, this is an apt choice.

Examples of companies that might use an operational data store include:

A retail company that needs to track inventory levels in real time and ensure that orders are processed efficiently.
A financial institution that needs to process transactions quickly and accurately.
A healthcare provider that needs to track patient data and ensure that medical records are up to date.

5. Cloud-Based Data Warehouse

A cloud-based data warehouse is a type of data warehouse that is hosted in the cloud. This type of data warehouse is designed to be highly scalable and can be used to store and analyze large amounts of data.

They are great choices to accommodate growing businesses.

Three examples of companies that might use a cloud-based data warehouse include:

A startup that needs to store large amounts of data but doesn’t have the resources to build and maintain an on-premise data warehouse.
A global corporation that needs to store and analyze data from multiple locations around the world.
A company that experiences fluctuations in data storage needs and requires a flexible and scalable solution.

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How to Choose the Right Type of Data Warehouse

Choosing the right type of data warehouse depends on a number of factors, including your business needs, the size of your organization and your budget.

A small company might tend to use a cloud-based data warehouse, as it is a more cost-effective option for storing and analyzing data without investing in physical hardware.

A medium-sized company might use a data mart to analyze data at a more granular level, while a large company might use an enterprise data warehouse to analyze large amounts of data from different sources and provide a comprehensive view of all their data.

The cost of a data warehouse can vary greatly depending on the type of data warehouse, the size of the organization and the amount of data that needs to be stored.

An enterprise data warehouse can cost millions of dollars to set up and maintain, while a cloud-based data warehouse can cost a few thousand dollars per month.

A medium-sized company might expect to pay anywhere up to $500,000 per year for a data warehouse solution.

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Pros and Cons: Data Warehouses

When choosing a data warehouse, it’s also essential to consider the pros and cons of each type.

Data Warehouses

Pros

Provides a comprehensive view of all data
Integrates data from multiple sources
Handles large volumes of data

Cons

Costly to implement
Requires specialized expertise to design and maintain
May take longer to implement than other options

Data Marts

Pros

Designed to meet specific business unit or department needs
Analyzes data at a more granular level
Cost-effective

Cons

Limited in scope
May not integrate well with other data sources
May not be able to handle large volumes of data

Virtual Data Warehouses

Pros

Provides a unified view without physically consolidating data
Can keep data separate physically
Can integrate data from multiple sources

Cons

May require additional software or hardware
May not be as efficient as other options
May require additional time to set up and maintain

Operational Data Stores

Pros

Provides real-time data for operational reporting and analysis
Optimized for write-intensive applications
Can handle large volumes of data

Cons

May not integrate well with other data sources
May require additional hardware to handle large volumes of data
May require additional time to set up and maintain

Cloud-Based Data Warehouses

Pros

Highly scalable
Can accommodate growing data needs
Cost-effective

Cons

May require additional security measures
May require additional time to set up and maintain
May not be as efficient as other options

Choosing the right data warehouse is essential to ensuring that your business can make data-driven decisions. If you need help evaluating options for your organization, don’t hesitate to contact us. Our research and operations team can connect you with a PE-grade data warehouse resource to help you make the right decision for your business.

If you’re ready to take your data analysis to the next level, schedule a scoping call with the BluWave research and operations team today. We’ll work with you to understand your business needs and connect you with best-fit resources within one business day.

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Post-Merger Integration: Framework, Keys to Success

February 22, 2023 Brad Gerick

Mergers and acquisitions (M&A) are not simply financial transactions. They involve complex changes in organizational structure, culture, systems and processes.

The post-merger integration (PMI) process is a critical component of any M&A deal. PMI refers to the process of integrating two or more organizations after a merger or acquisition.

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With the right strategies and framework in place, businesses can ensure a smooth transition.

Let’s discuss some of the key aspects of this challenging process.

Preparing for Post-Merger Integration

Preparing for the integration process involves creating a PMI plan and timeline, as well as developing strategies for effective communication and stakeholder engagement. These are essential for ensuring buy-in and support from employees, customers and suppliers.

Here are some things that might be part of that plan and timeline:

Identifying key stakeholders
Creating a PMI team
Conducting due diligence
Developing a communication plan
Creating a detailed integration plan with clear target dates
Assigning responsibilities and roles
Establishing a process for issue resolution and decision-making
Developing a change management plan
Creating a risk management plan
Defining success metrics and benchmarks
Establishing a timeline for monitoring progress and making adjustments as needed.

PE-Grade M&A Resources

Execution of Post-Merger Integration

The execution of PMI involves several critical steps, including identifying and addressing cultural differences, harmonizing systems and processes, ensuring regulatory compliance and addressing talent management issues. Failure to address these issues can lead to a lack of alignment, lower employee morale and decreased performance.

One of the most significant challenges during the PMI process is identifying and addressing cultural differences. That’s because failure to address cultural differences can lead to significant issues down the road. An experienced interim CHRO can be a great resource for these situations.

Harmonizing systems and processes is another critical step in PMI. This involves aligning IT systems, financial reporting and other key processes. Harmonization ensures that the new organization operates efficiently and effectively, and that there are no redundancies or duplications.

READ MORE: Hire an Interim CFO

It’s also essential to identify and address any regulatory requirements and ensure that the new organization is compliant with all relevant laws.

Finally, addressing talent management issues is critical for ensuring that the new organization has the right people in place to reach its goals. By identifying key talent, developing retention strategies and creating a plan for integrating employees from both organizations, you’re much more likely to have a smooth transition.

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Measuring the Success of Post-Merger Integration

Working together to establish objectives and key results (OKRs) before joining the two organizations is essential. This is how you’ll know whether everything is going to plan and objectives are being reached.

Focus on the metrics that are most important to your business, when they need to be achieved by and how you plan to report them to key stakeholders.

Success metrics may include financial metrics such as revenue growth, profitability and return on investment (ROI). It could also mean employee satisfaction, customer satisfaction and market share.

Whatever key performance indicators (KPIs) you choose, they should be directly tied to your bottom line.

PE-Grade M&A Resources

Post-merger integration is a complex and challenging process, but with the right framework in place, businesses can ensure a smooth transition.

If your business is considering a merger or acquisition, it’s essential to have a comprehensive PMI framework in place. The right one will help your business mitigate risks, harmonize systems and processes and address cultural differences, regulatory compliance and talent management issues.

The PE-grade resources in the BluWave network can help you create that framework and get the maximum value out of your new business relationship. Contact our research and operations team to set up a scoping call and get connected with a best-fit service provider in less than one business day.

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Business Intelligence Infrastructure: What is it?

February 17, 2023 Brad Gerick

As businesses become more data-driven, the need for a robust business intelligence (BI) infrastructure becomes increasingly crucial. With the right infrastructure in place, organizations can unlock insights that inform their decision-making and give them a competitive edge.

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Let’s explore the key components of a BI infrastructure and why they matter.

Data Storage and Management

Businesses must ensure they have the right data management systems in place to efficiently store, process and manage their data.

This means utilizing databases, data warehouses and data lakes, depending on the nature and volume of the data. Without a solid foundation for data storage and management, any BI initiative will fail.

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Data Integration

With data stored in various systems and applications, data integration is crucial to ensure that data is collected from all relevant sources.

Data must be integrated from internal systems like CRMs and ERPs as well as external sources. These could include social media, market research or other third-party platforms that are central to your business.

Consolidating all this information means having access to a comprehensive view of operations and customers behavior and characteristics.

Data Visualization and Reporting

One of the key goals of a BI infrastructure is to help users make sense of data through visualizations and reports.

By using tools like dashboards and charts, leaders can present the numbers in a way that is easy for the entire team to understand and interpret.

This practice will also help users identify trends that might not be immediately apparent in raw data, or to the naked eye.

Real-time reports are particularly important in today’s fast-paced business environment. Without them, you can quickly fall behind your competition and lose touch of who your users are.

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Data Analysis and Modeling

Data analysis and modeling are essential components of any BI infrastructure. Businesses need to be able to build models that can predict future outcomes.

Skilled analysts are key here, but they also need the right technology to support data modeling, machine learning and artificial intelligence.

Leveraging these technologies will give organizational leaders a deeper understanding into their operations and customer base.

READ MORE: How the BluWave Process Works

Whether you’re a PE firm, a portco, or an independent or public company, investing in a robust BI infrastructure should be a top priority.

BluWave has top BI, analytics and AI resources on standby to address your specific needs, whatever sector your company serves.

Set up a scoping call with our research and operations team to get connected with two or three best-fit service providers that are experienced with your exact business intelligence infrastructure need.

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IT Due Diligence Process: Mergers and Acquisitions

February 10, 2023 Brad Gerick

Mergers and acquisitions are complex processes that require due diligence in multiple areas. Information technology (IT) due diligence – a thorough evaluation of the target company’s IT assets, systems and processes – is one important aspect.

The goal is to identify any potential risks or opportunities related to the target company’s technology and make informed decisions about the transaction.

“It’s important to understand how well a company is using technology or how much of a risk or liability it’s become to a company,” BluWave Head of Technology Houston Slatton says.

Pre-Vetted IT Diligence Resources

One example of something companies look out for in IT due diligence is “technical debt.”

We’re going to get into more detail, though. Let’s talk about the importance and process of IT due diligence in mergers and acquisitions, especially as it relates to private equity.

READ MORE: Hire an Interim CTO

IT Due Diligence Overview

IT due diligence in M&As typically involve the following steps:

Preparation

The acquiring firm or company must define the scope of the process, identify key stakeholders and set expectations.

An IT DD team should have relevant skills and experience, set clear goals and expectations and determine the right timing for it to happen.

This lays the foundation for an efficient and transparent process from start to finish.

“To a certain degree, every company is a software company now,” Slatton says. “Technology is now critical to the functioning of every business, whether it is selling software or building widgets.”

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Information Gathering

Collecting data on the target company’s IT systems, assets and processes is the next step.

This entails conducting a comprehensive review of the target company’s systems, processes and infrastructure, as well as its software and application inventory.

All of this will be crucial to helping you make informed decisions about how the assets may impact the M&A transaction.

Asset Evaluation

Now it’s time to assess the value and functionality of the IT assets.

This includes both custom-built and commercial software and applications, as well as hardware, infrastructure and data management systems.

When evaluating these, consider their functionality, reliability, scalability and compatibility with your own systems and processes. Do they add something completely new? Is there a lot of overlap?

Look at how they may impact your organization post-acquisition, too. Both in terms of cost and integration into your existing IT environment.

Contract Review

The next step is to evaluate contracts and agreements.

This means everything from contracts with vendors to service providers to other third-party partners.

The goal is to identify potential legal and contractual risks or obligations that may impact the deal.

This will also help you negotiate better terms and conditions, if necessary.

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Risk and Opportunity Identification

Identifying any potential risks or opportunities related to the target company’s IT systems, assets and processes comes next.

You might start by assessing the impact of the assets on your own organization, as well as considering any risks or opportunities associated with the transaction as a whole.

Recommendations

Last but not least, you will present the findings of the IT due diligence process to make the most informed decisions possible.

This may include how best to integrate the target company’s assets into your own organization. Or measures that should be taken to address any identified risks or opportunities.

This final step helps ensure that the transaction goes as smooth as possible, and everyone is on the same page once papers are signed.

Start Your IT Due Diligence Project

The BluWave network is full of expertly vetted service providers who have helped hundreds of PE firms with IT due diligence.

“The better service providers will look at how well a company uses a tools they have and how well they have enhanced them to meet the needs of the business,” Slatton says.

Contact us to set up a scoping call, and our research and operations team will provide two or three tailor-made resources within a single business day.

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Q4 2022 BluWave Insights

January 19, 2023 Delaney Walker

Every quarter our team analyzes the projects we work on with our 500+ PE firm clients to get a birdseye view of the market. We recently compiled our Q4 findings, as well as annual 2022 findings, into our Q4 2022 BluWave Insights Report. Request your copy.

Key findings from 2022 include:

Annual value creation activity increased ~14% YoY.
Human capital remains PE’s primary area of focus at 50% of all 2022 value creation activity.
Strategy resource usage in 2022 diligence activity increased from 43% in 2021 to 46% in 2022.

Learn more about the insights we gleaned from Q4 and 2022:

Learn more about how we can support your value creation, human capital, and strategic diligence efforts.

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Video transcript:

BluWave serves a trusted role with hundreds of the world’s leading private equity firms and thousands of proactive businesses by connecting them with the best-in-class third parties to help build value with speed and certainty. With the conclusion of 2022 and the inception of the new year, we’ve gathered insights from our unique vantage in the private equity landscape. From our proprietary data, we are able to glean insights into how and why the best business builders in the world are assessing opportunities and building value in their portfolio companies. Here are some of the top takeaways from the BluWave Activity Index from Q1-Q4 2022.

The common theme throughout the entirety of 2022 is that business builders were focused on creating value in their companies. In the BluWave Value Creation Index, activity related to value creation was up to 72% by year-end – a more than 14% increase from 2021. Furthermore, Human Capital is surging to historically high numbers. The BluWave Activity Index shows that 50% of all value creation activity was invested in human capital for the year, and 54% in Q4.

On the due diligence side, deal flow was down in 2022. The BluWave Value Creation Index shows private equity activity related to diligence was down to 28% for the year. Within the diligence activity that we did see, we saw firms focus heavily on strategy initiatives – accounting for 46% of all diligence activity, up from 43% in 2021. In 2022, PE firms perceived the cost of misreading the market to be high in an uncertain economy, so they brought in strategic resources to help.

BluWave is pleased to work with some of the best business builders in the world every year. We hope the insights from our 2022 BluWave Insights Report will help you close deals with certainty, create differential value in your companies, and prepare for a confident exit. If you’d like to learn more and get the full report, please contact any member of the BluWave team or follow the link below.

Interim CFO for a Financial Crisis

January 13, 2023 Brad Gerick

When a company faces a financial crisis, an interim chief financial officer can make all the difference in a successful turnaround.

Whether going through a restructuring, facing bankruptcy or other challenging financial situations, an experienced financial leader is essential.

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A man wearing a suit sitting at a desk with an open gray laptop, a white coffee mug and papers and folders. He's looking down and the desk and looks very stressed.

Situations for an Interim CFO

A financial crisis can be due to something within a company, external economic forces, or both.

Poorly responding to a distressing financial situation can destroy a business. A capable interim CFO, however, will know how to navigate the following scenarios.

Bankruptcy

The two most common bankruptcies a company will file for are chapter 7 and chapter 11.

When a company files for chapter 7 bankruptcy, it plans to shut down.

Chapter 11 bankruptcy, though, means a company is still viable but needs help relieving some of its debt.

While an interim CFO would seldom take on a chapter 7 bankruptcy, it’s common for them to step in and help a company try to avoid chapter 11 bankruptcy. If it’s not avoidable, a temporary chief financial officer can also help navigate the situation.

“A very good interim CFO can be a lot of help because they come in and they look at, ‘What are the things between gross profit and net earnings that are negatively impacting the business?’” BluWave controller Justin Scott says.

Cost-saving measures could include lowering headcount, cutting advertising costs or negotiating with creditors, which we’ll discuss more below.

Restructuring

While most restructuring situations are tied to bankruptcies, there are exceptions. Here are some of the more common ones.

Carveouts

An interim CFO who can adeptly perform carve-out tasks is key for organizations looking to sell off part of their company. That can mean getting their hands dirty setting up general ledger architecture or determining which employees to include in the sale.

“Let’s say 25 percent of the existing team is going with the carve-out, then I’ve got to decide ‘What’s the 25%? How are those processes going to work?’” Scott says. “Where you typically see the carve-out CFO come in is because they don’t want all of those activities to take away from the core business that the existing CFO is already managing.”

CASE STUDY: Interim CFO with Expertise in Commodities, Hedging for Manufacturing PortCo

M&A Integration

An acquisition, of course, is the opposite situation. The finance executive must determine how to integrate multiple teams in the same company.

“You likely have multiple sets of books. You have multiple systems. None of them talk to each other,” Scott says. “Essentially, you’re running parallel systems or parallel processes for everything. And then you have to manually consolidate everything and that’s just no fun.”

Ginessa Ross, who is often the first point of contact for interim CFOs BluWave works with, says lots of clients have been emphasizing M&A skills recently.

“All sides of it, whether it be due diligence, post-merger integration or prep for sale – having M&A experience, especially in private equity, is key,” she says.

Cost Savings

A turnaround CFO may be sought when accounts payable get out of control.

If the internal team has become bloated, they’re likely to partner with someone in human resources to reorganize the company more efficiently.

“It’s not typically just finance here. It’s typically that a new technology has been implemented that’s changed the field and headcount needs to be reduced,” Scott says. “How do we eliminate or mitigate the overhead expense of the SG&A of what’s happening today?”

They may also cut marketing costs or improve operations to find savings. This can be done by spending less on advertising, implementing automation tools or canceling automated subscriptions, for example.

Hostile Takeover

Although unusual, there are times when a temporary finance executive is brought in for a hostile takeover.

“It is possible to go to an interim CFO as a stopgap,” Scott says. “But it’s not a likely scenario.”

More often, the company executing the takeover will already have a CFO in place.

Hire an Experienced Interim CFO for a Crisis

Skills Needed for a Financial Crisis

What skills does an interim CFO need in a time of crisis? Accounting and finance, of course, are fundamental.

“You have to know the full revenue cycle cradle to grave,” Scott says, adding that strong management is also a key trait.

There are other things, though, that are particularly important for a chief financial officer in financially distressed situations.

Internal Communication

When managing a company’s finance team, the interim CFO must be able to communicate their plan of action. Since they’re typically in the role for around six months, they don’t have as much time to win trust and build unity.

Focusing the early days on getting to know the team helps with buy-in for the duration of the project. One component of this is alleviating fears of the unknown.

“The first day, I think, is talking to as many people as possible in the company, on the finance team, and reassuring them that things are going to get better,” says one long-time interim CFO from our network of experts.

A temporary finance executive must also be able to communicate with his or her peers and superiors. Not only do they sit in the C-suite, but they may be a direct line to a private equity firm that has a lot at stake.

“They have to be able to build credibility going both directions quickly if they’re going to get anything done,” Scott says.

External Communication

Beyond providing clarity for coworkers, a chief financial officer must also be skilled at working with clients, creditors, vendors and other outside entities.

If a company is in danger of filing for bankruptcy, the interim CFO will likely negotiate with creditors to lower their debts.

They may also ask clients to move up their timeline for accounts receivable so the organization can have more cash sooner.

In either case, being able to work well with others is paramount.

“The situations where financial executives most often fail to reach an agreement are when they don’t have any people skills, or they don’t truly want a result,” Scott says. “You have to be able to bend and give a little bit on some of these things just like in any negotiation.”

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Crisis Exit Strategy – Prep for Sale

Before taking a company’s financial reins in the midst of a crisis, an interim CFO should understand if the firm is planning an exit, and if so, what the strategy is. That allows the company to get the maximum benefit out of its new executive resource.

“Bringing in somebody from the outside allows you to access a broader set of skills and brings a fresh perspective,” BluWave managing director Houston Slatton says.

Here are some differences between prepping to sell the entire company vs. just a few assets.

Sell the Entity

If someone is brought on to prep for the sale of an entire company, their job is to get it in the best shape possible for the buyer.

Not only will this make it a more attractive purchase, but the seller will extract more value, too. This process should be planned for months, if not years in advance, when possible.

The interim chief finance officer brought on in this situation should have experience improving operations, cutting costs, increasing accountability and more. They should also be well-versed in evaluating and working with potential buyers and closing the transaction.

CASE STUDY: Temporary Finance Leader for a Creative Digital Agency

Sell the Assets

Even when parts of a company are being sold, as opposed to the entire organization, many of the same skills apply.

In this scenario, though, the company remains intact, and employees are not typically part of the package.

The right executive will help an organization receive a large return for those assets, boosting cash flow.

Each interim CFO in the BluWave network has been vetted and reference-checked before we ever put them on our roster.

That way, when companies in financial distress reach out, we can provide two or three exact-fit solutions in less than one business day. Whether your company is in the nation’s capital, Atlanta, our hometown of Music City, or any other major city, we have the resources you need.

This attention to detail and our private-equity speed turnaround give organizations a greater chance of getting back on track financially.

Learn more about the select group of private equity-grade interim CFOs we work with daily.

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Top 5 Private Equity Trends In 2022

Recruiter for Interim Controller Critically Needed

Firm had immediate need for interim finance recruiting firm with SaaS experience

A PE partner came to us with a vital need for a recruiting firm to place an interim controller in their software portco. The recent departure of their previous controller and senior accountant left the PE firm in urgent need of an interim controller who could come in, take the reins, and assess the function while the PE firm searched for a fulltime hire. With the task beyond the internal recruiter’s reach, the firm was seeking a recruiting service that could identify interim candidates who had controller experience in other PE-backed portcos, familiarity with the company’s systems, relevant industry experience, the ability to quickly ramp up in the role, and the potential to be a rent to own hire.

BluWave identified top recruiting firms from pre-vetted network

Leveraging our founder’s 20 years in private equity and our experience working on thousands of projects with 500+ PE firms, we have extensive frameworks for assessing PE-grade recruiting needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of recruiters 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 recruiters from our invitation-only Intelligent Network that fit their exacting needs.

Client quickly sourced the needed controller thanks to the recruiter BluWave provided

The day after the initial scoping call, the PE firm and portfolio company were introduced to a PE-grade recruiting firm that specialized in finance and accounting with experience recruiting for SaaS businesses. The PE firm engaged the provider and was able to quickly source a controller with relevant experience for the SaaS portco.

Pricing strategy expert urgently needed for SaaS portco

Building out a new product GTM strategy, PE firm & portco needs pricing expert

A PE senior associate came to us with a critical need for a pricing strategy expert for their SaaS portfolio company that was developing a new application to sell into the healthcare sector. The firm and portco had been working with a GTM strategist on the commercial plan, but now urgently needed a pricing expert that could help them determine how to price the new product. With the product almost ready to roll out, they needed a pricing expert that could start within the next 2-3 weeks, had industry experience, and could develop as well as justify a pricing strategy for the application.

BluWave has in-network pricing expert with relevant industry knowledge

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 experts that uniquely meet the private equity standard. We interviewed the PE firm and portfolio company to understand their specific key criteria, and then connected the client with the select pre-vetted pricing strategist from our invitation-only Intelligent Network that fit their exacting needs.

Firm selects best in class provider to move forward with pricing strategy

Within 24 hours of the initial scoping call, the PE firm was introduced to two PE-grade pricing experts that specialized in SaaS based businesses and were available to help the client immediately. The client selected their ideal choice and was able to confidently develop a pricing strategy and ultimately, roll out their new application to the healthcare market.

In the Know: How to Tackle Merger Integration

November 30, 2022 Delaney Walker

As part of an ongoing series, we’re sharing real-time trending topics we are hearing from our 500+ PE firm clients. In our most recent installment, Scott Bellinger, BluWave Consulting Manager, shares some of the top reasons our clients bring in merger integration groups and the benefits they gain from them. Learn more by watching the video below.

Interested in connecting with the PE-grade, specialized merger integration providers you need? Contact us here to quickly get started.

Video transcript:

According to data from the BluWave Activity Index, third-party merger integration specialists are consistently one of the top 10 service providers that private equity firms look to for support. Add-on acquisitions are standard operating procedure in private equity, and leading firms rely on expert third parties to seamlessly execute any integration. Here are some of the top reasons PE firms bring in merger integration specialists and the benefits they see from engaging these groups.

When integrating two companies, the goal is always for 1+1 to be greater than 2, however, if not integrated properly, a new add-on investment can quickly go south. PE firms who trust their integrations to expert third parties can guarantee that the integration will be executed properly, resulting in an outcome greater than 2. Additionally, by trusting their integrations to third parties, they are able to rest assured that their companies will be fully integrated – something that strategic buyers are looking for more often. Plus, if the integration is occurring in a founder-led business, a third-party expert is essential given that most founder-led businesses rarely have the talent in-house to effectively integrate both businesses.

The benefits of utilizing these experts go far beyond achieving an outcome greater than 2. For one, these groups can excellently integrate companies quickly – our pros can perform an integration from start to finish in as few as 120 days. Plus, some of our innovative groups can provide additional services complementary to strictly executing your merger integration, such as conducting a pre-merger synergy assessment to help you better understand potential cost-savings beforehand.

We would be happy to connect you with the PE-grade third-party merger integration expert that is exactly suited for your needs, just give us a shout at info@bluwave.net.

In the Know: How to Action BI & Analytics Experts

November 10, 2022 Delaney Walker

As part of an ongoing series, we’re sharing real-time trending topics we are hearing from our 500+ PE firm clients. In our most recent installment, Jeremy Yoder, a BluWave Strategic Account Executive, shares how to action BI & Analytics experts, detailing the different use cases firms and other proactive companies have for bringing in data & analytics experts. Learn more by watching the video below.

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Video transcript:

In our increasingly digital world, business intelligence and analytics is a growing input factor for companies to measure their level of growth and for private equity firms to evaluate the success of their portcos. PE firms come to BluWave with needs for data and analytics specialists who can help drive effectiveness and efficiency within their portfolio companies. Here are just a few of the most common use cases we see for why a firm brings in data and analytics specialists.

Number one, developing more measurable metrics at the portco level. The first step to making data-driven decisions is having the right metrics and reporting measures in place. Many companies are lacking this when their first PE sponsor comes into the picture, so our clients equip their new portcos with specialists who can help companies build a solid metrics and reporting foundation. This gives the PE firm visibility into how their portcos are tracking against those set goals.

Number two, data diligence. For companies with large sets of data on products and customers like companies in the B2C sector, there is often hidden value hiding within these datasets if they aren’t being analyzed. When companies aren’t actioning the data available to them, leading PE firms bring in specialists to uncover what stones are being left unturned and help glean risks and actionable opportunities from the data that already exists.

Number three, cleaning and assessing data. The most forward-thinking PE firms are using specialists to clean and assess their portcos data so that they can improve the precision of their evaluations and more deeply inform the health of their organizations. We have a deep bench of business intelligence and analytics providers at the ready for a variety of niche needs. To get connected to the PE-grade,exact-fit provider you need, contact us at info@bluwave.net.