Need: Value Creation

Full value creation vitally needed for carveout

Firm needs value creation providers across services

A PE firm came to us with a critical need for multiple value creation providers for a recently acquired manufacturing portco. A new carveout from a large company, the firm needed to engage multiple providers to aid with the carveout process over the next 14 months before the TSA that extended critical services ended. They needed PE-grade providers for IT strategy and implementation, hardware replacement, cybersecurity assessment, an interim CFO role, capacity planning and operations improvement, and procurement & sourcing. Each provider needed to meet a unique set of criteria in order to suit the firms needs for the new carveout.

BluWave indentifies pre-vetted providers for each need

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade carveout 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 for each carveout need, and then connected the client with the select pre-vetted providers from our invitation-only Intelligent Network that fit each one.

Firm engages PE-grade providers with exacting expertise

Within 24 hours of the initial scoping call, the PE firm and portfolio company were introduced to the first set of providers they needed that specialized in the manufacturing industry. For each carveout need, we presented select providers, and the client then selected their ideal choice. The PE firm was able to quickly engage a variety of top providers to meet each of their needs and ultimately, ensure a seamless carveout process.

Interim CFO Crucially Needed for Portco Carveout

Firm needs interim CFO to lead carveout

A principal at a PE firm came to us with a critical need for an interim CFO to lead the carveout of a manufacturing company that they had just signed on. With closing occurring in 60 days and a 12-month TSA that would then begin, the firm urgently needed an interim CFO that could be dedicated to the carveout infrastructure. The firm needed an individual who could perform advanced carveout tasks but was also willing to roll up their sleeves and be hands-on in tasks like setting up the GL architecture. It was critical that the firm found an interim CFO with a deep track record in PE, carveout experience, the ability to be onsite 3 days per week, experience in the manufacturing industry, and functional expertise in a wide variety of financial and accounting areas in order for the carveout to be smoothly executed.

BluWave understands unique need & identifies exact-fit interim CFOs in network

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade carveout-specific interim CFO needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of carveout-focused interim CFOs that uniquely meet the private equity standard. We interviewed the PE firm to understand their specific key criteria, and then connected the client with the select pre-vetted interim CFOs from our invitation-only Intelligent Network that fit their exacting needs.

Firm engages interim CFO and successfully proceeds with carveout

Within 24 hours of the initial scoping call, the PE firm and portfolio company were introduced to two PE-grade interim CFOs with extensive carveout experience and industry expertise. The client selected their ideal choice. The PE firm was able to confidently and quickly engage the interim CFO and trust them to lead the carveout thanks to them already being BluWave-vetted.

Q3 2022 BluWave Insights

October 18, 2022 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 Q3 findings into our Q3 2022 BluWave Insights Report. Request your copy.

Key findings from Q3 ’22 include:

  • Value creation activity has increased 11% YoY.
  • Human capital remains PE’s primary area of focus at 36% of all Q3 activity.
  • Technology activity has changed 86% YoY.
  • Sales & marketing activity has changed 29% YoY.

Learn more about the insights we gleaned from Q3:

We can support your value creation needs, human capital needs, technology needs, sales & marketing needs, and more.

Video transcript:

BluWave serves a trusted role with more than 500 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. From our unique vantage in the private equity landscape, we’re 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 during Q3 2022.

First and foremost, value creation remains key in private equity. Despite the unsteady economic landscape, PE firms are equipping their portfolio companies with resources to maintain the momentum of previous value creation efforts. The BluWave Value Creation Index shows a more than 11% increase in Q3 value creation activity year over year. It is evident that PE firms are running towards the storm, treating economic uncertainty as an opportunity rather than a setback.

Number two, technology is surging as digitization continues to be embedded in the post-COVID world. Private equity firms are equipping portfolio companies with data and analytics capabilities to enable data-driven decision making and workflow automation. We’ve seen technology activity rise from 8% of all activity in Q3 2021 to 15% of all PE activity in this past quarter, and we expect to see technology activity remain high as firms continue to invest in subscription-based software companies due to their stability during volatile economic times.

Lastly, human capital remains private equity’s primary area of focus accounting for 36% of all activity in the BluWave Activity Index for Q3 2022. Firms continue to take strides to ensure the teams in their portfolios are top notch and well-equipped for success. This quarter we saw a surge of PE firms bringing in “wartime generals” with specialized skillsets equipped for the “new now” that can help guide portfolio companies to success in the current economic environment.

It is our hope that the information in the Q3 BluWave Insights Report will give you incremental edge as you build the best businesses in the world. If you’d like to learn more and get the report, please contact any member of the BluWave team or follow the link below. Onward.

Compliance group urgently needed for quality control process

Urgent need for FDA compliance group

A PE firm’s principal of operations came to us with a critical need for a compliance group that could help them assess a target pharmaceutical manufacturing company’s FDA-certified quality control process. Working on a fragile deal, the firm needed an expert provider who could assess the company’s processes in order to ensure they were well-documented, identify if there could be issues in the future given where the FDA was going, and note if the results from a recent FDA inspection were kosher. The firm needed the provider to be PE-grade, understand the pharmaceutical space, and be enough of an expert to also provide recommendations as they performed the audit.

BluWave finds exact-fit provider to match firm’s needs

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade compliance & regulatory needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of compliance & regulatory groups as well as independent 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 a select pre-vetted provider from our invitation-only Intelligent Network that fit their exacting needs.

Firm engages presented provider to conduct quality control

Within less than 24 hours of the initial scoping call, the PE firm was introduced to an exact-fit PE-grade compliance group that specialized in assessing FDA quality control processes .The PE firm confidently engaged the provider to conduct the audit. Thanks to the provider’s work, the firm was able to gain the insights they needed on the current state and needed improvements of the target’s processes in order to move forward with the deal.

Leadership coach vitally needed for new CFO

Leadership Coach needed to mentor new CFO

A PE firm principal came to us with a critical need for a CFO consultant for their manufacturing portco. Since their seasoned CFO left the company around a year ago, a young, less experienced CFO entered the leadership role. Having never been a CFO before, the firm needed an executive coach who could provide the young CFO with leadership training and serve as a mentor to them to help them get up to the speed of a C-suite role. The firm urgently needed someone with experience as a CFO in a PE-backed company, knowledge in the alcohol beverage manufacturing field, and who was willing to be onsite for 20 hours a week.

BluWave finds exact-fit CFO consultant with industry expertise

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

Firm confidently engages PE-grade CFO consultant

Quickly after the initial scoping call, the PE firm and portfolio company were introduced to two PE-grade executive coaches that specifically worked with CFOs in the manufacturing industry. The client selected their ideal choice, engaging an exact-fit exec coach with a consumer manufacturing background, multiple referrals from PE-backed companies, and availability to travel to the needed location. The PE firm was able to confidently move forward with the new CFO knowing that he was getting the training he needed to get caught up to speed.

Cost reduction group hired to analyze legacy supply contracts

Cost reduction group needed to immediately cut costs

A private equity firm acquired a leading plastics company that designed and manufactured innovative plastic-injection-molded products. The firm believed there was room for improvement and cost reductions in the company’s supply contracts. Still, it lacked certainty given the nature of the portfolio company’s products and its specific resin grades. The firm asked us to connect it with a best-in-class cost-reduction group with deep expertise in this particular need.

We quickly met with the client to understand their specific needs

We first interviewed the PE firm to understand the nuances of its needs and the unique challenges involved with post-transaction efforts to reduce costs. Then we quickly matched these criteria to the pre-vetted candidates from our invitation-only network, rooted in our founder’s 20 years of PE industry experience. Based on our proprietary approach, the PE firm hired a group of resources with the exact plastics market experience they needed, as well as key relationships with manufacturers.

Cost reduction group saved our client more than $10m

The vetted group identified more than $10 million in annual savings and created more than $80 million of pro forma enterprise value.

Interim CHRO Urgently Needed for Software Portco

Firm needs top interim CHRO for fast growing portco 

A managing director came to us with a critical need for an interim CHRO for their software portfolio company. Having recently experienced meaningful growth through M&A, the portfolio company urgently needed a top interim CHRO to act as a strategic HR partner to the CEO and Board during the integrations. The managing director was looking to match the portfolio company with an interim CHRO who could drive cultural alignment, improve organizational design, support M&A integration, and engage a deeper pool of talent, among other things. They quickly needed a specific hire, with PE experience, industry knowledge, and M&A background. 

BluWave identifies three pre-vetted interim CHROs with industry related background 

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

Portco engage exact-fit CHRO for interim position

Quickly after the initial scoping call, the PE firm and portfolio company were introduced to three PE-grade interim CHROs that specialized in M&A in the software industry. The client selected their ideal choice and was able to confidently move forward with a strategic thought partner to lead HR in the fast-growing portco. The company ultimately ended up hiring the interim CHRO for the full-time role.  

Interim CHRO Urgently Needed for Professional Services Portco

Interim CHRO needed for high growth, professional services portco 

A PE firm managing director came to us with a critical need for an interim CHRO for their professional services platform. Combining three companies to make the platform, the firm urgently needed a PE-grade interim head of HR to deal with contracts, advise future state systems, reconfigure benefits plans, help them migrate off their PEO and stand up their own HR function, and more. Closing on the platform in the upcoming week, the managing director quickly needed to fill this role with an interim who had industry expertise, previous experience with M&A and PE-backed middle market companies, as well as the ability to execute the needed tasks at a high level.

BluWave uses pre-vetted network to find top CHRO options

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

Firm engages chosen interim CHRO to drive success in portco

Within less than 24 hours of the initial scoping call, the PE firm was introduced to three PE-grade interim CHROs that specialized in M&A and the professional services industry. The client selected their ideal choice. Thanks to BluWave, the PE firm was able to quickly & confidently appoint a top interim CHRO to handle the transitions involved in the platform close as well as lead the HR strategies moving forward.

Critical CHRO To Step in as Interim Support

Strong interim CHRO needed to lead HR in healthcare services portco

A proactive healthcare services company came to us with a critical need for an interim CHRO. With the current head of HR leaving and the recruiting process taking longer than normal, the healthcare services company needed a strong HR leader with role and industry expertise to come in and provide support during the interim, an expected time frame of 3-6 months. Already with ~1000 employees and additional acquisitions on the horizon, they urgently needed a local HR leader that could be boots on the ground in HQ during the pandemic.

BluWave responds to niche need by providing top interim CHRO candidates

Leveraging our experience working with thousands of proactive companies, we have extensive frameworks for assessing interim CHRO needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of experienced HR leaders that uniquely meet the highest standard. We interviewed the company to understand their specific key criteria, and then connected them with the select pre-vetted interim CHRO candidates from our invitation-only Business Builders’ Network that fit their exact needs.

The company selected their ideal choice and filled the role with a top hire

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

Essential Need for Data Consolidation, Analysis, Visualization

Consumer products portco in critical need of data consolidation and analysis

A portfolio company came to us with a critical need for a business intelligence and analytics provider to consolidate data for their consumer products business. With sales data coming in from their distributors in different manners, they had a critical need to gather and interpret the information they received into usable insights on consumer behavior, sales conversions, and product success. The portfolio company required a business analytics expert to outsource this task to that could quickly consolidate, analyze, and help them visualize their data into information they could action.

BluWave identifies two exact-fit business analytics providers

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade business intelligence and analytic needs for proactive companies. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of business analytics providers that uniquely meet the private equity standard. We interviewed the portfolio company to understand their specific key criteria, and then connected the client with two select pre-vetted business intelligence providers from our invitation-only Intelligent Network that fit their exacting needs.

Company confidently engages both PE-Grade providers

Within 24 hours of the initial scoping call, the portfolio company were introduced to two PE-grade business intelligence providers that specialized in consumer goods. The client engaged both providers to help with two different aspects of the data project at hand. The portfolio company was able to confidently engage the pre-vetted providers and quickly move towards their goal of value creation through data consolidation and insights.

Pre-close recruiters immediately needed

PE firm has critical need for pre-close recruiters for a target company

An investment executive at a large cap PE firm came to us with a critical need to source trainers and university recruiters for a target company in the engineering industry. Prior to closing on the target company, the PE firm wanted to explore the available selection of talent they would have if the deal closed, and they chose to expand the UK-based company into the USA market. The investment executive urgently needed a PE-grade pre-close recruiter who could source the trainer and university recruiter candidates – both of which required a unique skill set and background.

BluWave has in-network, PE-grade recruiters with industry experience

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade pre-close recruiter needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of non-executive recruiters that uniquely meet the private equity standard. We interviewed the PE firm to understand their specific key criteria. Then we connected the client with the select pre-vetted recruiters from our invitation-only Business Builder’s Network that fit their exacting needs.

The firm was equipped with the proper talent sources to proceed with their deal

Within less than 24 hours of the initial scoping call, the PE firm was introduced to a PE-grade non-executive recruiter that specialized in sourcing trainers and university recruiters for engineering technology roles. The client selected the presented provider and was able to confidently and quickly move forward in their diligence process, equipped with the necessary insight on the available talent they would need to drive value post-close.