Need: Value Creation

Scott Becker of McGuireWoods: Insights from the Mind Behind Becker’s Healthcare

September 8, 2023 Brad Gerick

When Scott Becker speaks, the healthcare and private equity sectors listen. As a partner with McGuireWoods and the founder and publisher of Becker’s Healthcare and Becker’s Hospital Review, Scott’s insights are invaluable. Recently, he shared his journey and perspectives on the Karma School of Business podcast, hosted by Sean Mooney.

Listen to the Episode

3 Takeaways from Scott

1. The Evolution of Becker’s Healthcare

“I started it literally 30 plus years ago,” Becker began, “trying to develop a reputation as somebody who knew the business and legal issues around, at that point, surgery centers, better than anybody else.”

This drive was not just about establishing a brand but about creating a niche in a saturated market. Scott’s vision for Becker’s Healthcare was rooted in his legal background and his desire to provide thought leadership in the healthcare sector.

Over the years, the focus of Becker’s Healthcare expanded. While it was initially centered around surgery centers, it now revolves around hospitals, health systems and health IT, among other areas. This evolution showcases Scott’s adaptability and his keen sense for market needs.

2. Recognizing and Capitalizing on Opportunities

“A lot of it is not brilliant. It’s following what’s working and doubling down on it as a constant business imperative,” Scott emphasized.

This approach is not about reinventing the wheel but about recognizing what’s effective and enhancing it. Scott’s success is a testament to his ability to identify emerging trends and strategically position himself and his ventures to benefit from them.

Mooney, echoing this sentiment, added, “If you’re the smartest person in the room, you need to find a new room.”

Healthcare Resources

3. Challenges and Trends in Healthcare

Scott delved deep into the current landscape of healthcare, highlighting several significant trends: “Challenges with margins, labor shortages, especially in the physician and nursing sectors, and the increasing involvement of various players in the healthcare space.”

These challenges are not isolated but are interconnected, shaping the future of healthcare. For instance, as healthcare sites increase, there’s a projected shortage in certain specialties, like anesthesiologists. This, in turn, affects patient care, with many unable to access their doctors promptly, leading to a resurgence in ER visits.

Scott’s insights provide a comprehensive overview of the challenges and opportunities in the healthcare sector, offering a roadmap for professionals navigating this complicated domain.

READ MORE: Specialized Healthcare Recruiters

Becker’s keen insights offer a deep dive into the intricacies of healthcare and private equity. His journey from attorney to entrepreneur and his ability to recognize and seize opportunities make him a voice worth listening to in the industry.

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

Controller with Leadership Skills for Resilient Growth

Service Area: Human Capital

Client Type: Portfolio Company

Service Provider Type: Controller Recruitment

Industry: Professional Services

The Need
Fortifying Financial Leadership for Growth

Amid the drive for strengthened financial stewardship, an portfolio company embarked on a vital mission to secure an adept controller. This strategic hire would steer a tech-enabled business services firm towards reinvigorating its standing, targeting more than $100 million revenue and just below $10 million EBITDA in the post-pandemic landscape.

The Challenge
Balancing Transition and Empowerment

The resignation of the former controller in early 2021 prompted a transitional phase. The assistant controller stepped into the role temporarily, yet the company sought an accomplished, permanent figure to lead the financial team. This transition signified an opportunity to establish a dynamic financial strategy, positioning the firm for resurgence in a post-pandemic economy.

How BluWave Helped
Niche Recruiter Delivers

For the crucial controller recruitment, BluWave introduced a skilled recruiter specializing in financial talent acquisition. With a notable history of placing finance and accounting professionals and a deep understanding of the target market’s dynamics, the third-party service provider was primed for this task.

The Result
Next-Level Financial Strategy

The adept recruiter, renowned for her acumen in the local target market, launched into action. Backed by extensive experience in financial leadership placements, she skillfully aligned the client’s requisites with her expertise. As the recruitment journey unfolded, the promise of renewed financial stewardship and growth resonated, paving the way for revitalized operations, elevated financial resilience and sustained progress.

Visionary Growth CEO for Philanthropic Advisory

Service Area: Executive Search

Client Type: Middle-Market Private Equity Firm

Service Provider Type: Specialized Recruiters

Industry: Professional Services

The Need
Pioneering Profit-Focused Leadership

A prominent middle-market private equity firm recognized the importance of hiring a CEO with an exceptional ability to drive profit-focused growth within a professional services company. With a strong foundation in social impact, the client’s portfolio company, a leading provider of philanthropic advisory services, sought an operator capable of steering the organization to new heights.

The Challenge
Nurturing Vision with Profitability

The portfolio company, generating approximately $80 million in annual revenue, engaged in philanthropic advisory services, outsourced accounting for nonprofits and fiscal sponsorship. While successful in the social sector, the company needed a transformative leader to expand its profitability. The challenge lay in identifying a CEO experienced in both professional services and private equity, who could manage and own the P&L, while also leading a team that often comprised millennial staff.

How BluWave Helped
Exclusive PE-Vetted CEO Search

BluWave tapped its network of meticulously vetted executive recruitment firms with a PE focus for a targeted CEO search. The specialized recruiter the PE firm chose from the short list aimed to identify a visionary leader with experience in professional services, private equity and successful P&L management.

The Result
A Visionary CEO for Profitable Expansion

The chosen search firm presented a CEO with expertise extended across professional services and private equity. This visionary leader’s background encompassed transforming businesses within the professional services realm, backed by private equity experience. With a proven ability to own and manage P&L, the new CEO had the insight to boost the portfolio company’s annual revenue. This strategic placement not only addressed the immediate need for an operator but also positioned the company for accelerated growth within the philanthropic advisory landscape.

Elevating IT Leadership for Tech-Enabled Compliance Services

Service Area: Executive Search for IT Director

Client Type: Portfolio Company

Service Provider Type: Specialized Recruiter

Industry: Technology Services

The Need
Pioneering IT Leadership

A dynamic player in legal and compliance services identified a crucial need for strong IT leadership. With a robust front and back-end technology platform powering their operations, the company recognized the importance of a strategic leader to maximize technology investments and steer their growth journey.

The Challenge
Transforming IT Strategy

Despite investing millions annually in IT, the client lacked a seasoned leader to strategically manage their resources. Their existing IT manager, while skilled, wasn’t a suitable fit to lead and guide the organization toward a more strategic and efficient approach.

How BluWave Helped
Navigating Leadership Acquisition

BluWave connected the portfolio company with a specialized IT recruiter well-versed in tech-enabled services companies. The recruitment strategy aimed to identify a practical leader capable of transforming the IT function into a more professional and strategic unit under private equity ownership. This transformation involved assessing the existing team, redefining roles, responsibilities, and structures, and paving the way for the implementation of a forward-looking strategy.

The Result
Strengthened Leadership, Streamlined Operations

The collaboration led to the successful selection of an IT Director who brought both practical experience and strategic vision to the table. By reevaluating the IT organization’s structure and introducing new roles, the newly appointed director streamlined processes, optimized technology investments and established a clear roadmap for the future. The result was not only improved operations but also a more agile and effective approach to tech-enabled compliance services.

VP of Consumer Sales Recruitment for eCommerce Expansion

Service Area: Executive Search – Sales

Client Type: Portfolio Company

Service Provider Type: Specialized Recruiter

Industry: Consumer Products

The Need
Elevating eCommerce Retail Sales

A portfolio company, a prominent player in gourmet cutting boards and countertops, sought a dynamic VP of Consumer Sales. With a strategic focus on eCommerce expansion, the client needed an expert who understood both the world of digital marketing and merchandising.

The Challenge
Finding a Gourmet-Commerce Expert

Balancing a significant Amazon presence and venturing into direct-to-consumer (D2C) eCommerce sales, the client faced the challenge of sourcing a VP of Consumer Sales who could drive success across both channels. They required a professional experienced in gourmet retail, merchandising and eCommerce strategies.

How BluWave Helped
Expertise-Centric Recruitment

BluWave engaged its vast network of specialized recruiters with expertise in consumer-facing industries, digital marketing and eCommerce. The company selected a firm whose strategy focused on identifying candidates with a deep understanding of gourmet category dynamics, housewares marketing and effective eCommerce and merchandising tactics.

The Result
Trailblazer Executive Hiring

Through a diligent selection process, the firm the client selected successfully recruited a VP of Consumer Sales who embodied a unique blend of skills: gourmet category knowledge, eCommerce finesse and retail merchandising prowess. The VP’s strategic vision aligned with the client’s goals of expanding eCommerce presence and fostering strong partnerships with gourmet retailers.

VP of Services Recruitment for Roofing Expansion

Service Area: Executive Search

Client Type: Portfolio Company

Service Provider Type: Specialized Recruiter – Sales

Industry: Construction – Roofing

The Need
Propelling Growth in Roofing Services

A prominent portfolio company in the roofing industry sought rapid expansion after acquiring three roofing firms, pushing their collective revenue to $50 million. To fuel this growth, they needed a visionary VP of Services who could lead their service business, enhance their commercial roofing endeavors and expand their service offerings.

The Challenge
Finding Industry-Savvy Leadership

The portco struggled to find a candidate with a deep understanding of the roofing industry. They wanted someone with a background in their same business with the ability to scale services. This leader also needed to contribute strategically to open new markets and fuel business growth.

How BluWave Helped
Strategic VP Recruitment

BluWave connected the portfolio company with a short list of exact-match candidates in the Business Builders’ Network. From those, the company chose a VP of Services with a proven track record in roofing operations and expansion.

The Result
Strengthening Business Expansion

The client secured a VP of Services with a strong industry-relevant background who also had experience with market expansion. This leader injected new energy into the roofing services business, fortifying existing operations and paving the way for successful expansion into untapped markets.

Interim CHRO Leads Complex Carve-Out Transition in Consumer Products Industry

Service Area: Interim Executives – Carve-out

Client Type: Lower-Middle Market PE Fund

Service Provider Type: Interim Chief Human Resources Officer (CHRO)

Industry: Consumer Products

The Need
Complex Carve-Out Transition

A lower-middle market PE fund was on the brink of closing a significant deal involving the carve-out of a global consumer products business. This would involve separating various entities from a large, global corporation. The challenge was compounded by the need to rely on a Transition Services Agreement (TSA) for critical support in the immediate aftermath of the deal.

The Challenge
Global Intricacies and TSA Reliance

The carve-out encompassed 11 entities distributed across several countries. With each entity presenting unique operational and regulatory challenges, the client required an experienced interim chief human resources officer (CHRO) with global expertise. The interim CHRO would not only have to manage the carve-out but also work within the framework of a TSA for an extended period. The client aimed to ensure business continuity, adhere to regulatory compliance and efficiently transition into operating independently from the TSA.

How BluWave Helped
Expert Interim CHRO Matching

BluWave sourced from its invite-only network an experienced interim CHRO who had a history of successfully executing complex carve-outs and global entity setups. The candidate possessed a deep understanding of setting up new practices, processes and HR functions from scratch. With a strong track record in change management and communication during transitions, the interim CHRO was well-equipped to manage the TSA and oversee the carve-out’s myriad challenges.

The Result
Seamless Carve-out and Transition

Under the guidance of the interim CHRO, the client’s carve-out was executed smoothly and within the expected timeframe. The interim CHRO’s expertise in payroll setup, change management and compliance ensured that all 11 entities were operational and aligned with regulations from day one. The outcome was attributed to the interim CHRO’s ability to effectively communicate with employees and manage expectations during a significant change.

Recruiting an Operations Associate for a Manufacturing Company

Service Area: Non-Executive Recruiting

Client Type: Portfolio Company

Service Provider Type: Specialized Recruiter

Industry: Manufacturing

The Need
Securing a Valuable Operations Associate

As a manufacturing portfolio company under the guidance of a lower-middle market PE fund, there was a pressing need to onboard a dedicated associate for their operations team. This role required an individual who possessed a unique blend of manufacturing FP&A experience, management consulting insight and the drive to enact substantial positive changes.

The Challenge
Overcoming Recruitment Roadblocks

The manufacturing portfolio company partnered with a specialized staffing/recruiting firm from BluWave’s invite-only network. This firm had a deep industry understanding and an impressive network of former management consultants – individuals well-suited for this particular role.

How BluWave Helped
Strategic Alliance

By leveraging BluWave’s network, the specialized staffing/recruiting firm collaborated closely with the manufacturing portfolio company. Together, they aimed to identify the ideal associate candidate, one possessing the necessary manufacturing FP&A background, relevant consulting experience and a strong commitment to driving transformative changes within portfolio companies.

The Result
Ideal Associate Hired

Thanks to the effective partnership facilitated by BluWave, the manufacturing portfolio company successfully identified and brought on board an associate who met their unique requirements. With a comprehensive skillset and a shared vision for operational excellence, this associate contributed significantly to the ongoing success of the company’s operations team.

The leader was high-energy. They were focused on finding the right candidate, and they did.

-VP of Operations at PE Firm

Strategic Diligence Insights for Life Sciences Expansion

Service Area: Commercial Due Diligence

Client Type: Upper-Middle Market PE Firm

Service Provider Type: Life Sciences/Healthcare Strategy Consulting Group

Industry: Life Sciences

The Need
Clinical Research Expansion

A healthcare-focused upper-middle market PE firm needed in-depth insights into the clinical research sector as part of a commercial due diligence project. Seeking a life sciences strategy consulting group’s expertise, they aimed to assess sustainable margins, therapeutic expansion opportunities and industry trends within Clinical Research Organizations (CROs) and Site Management Organizations (SMOs).

The Challenge
Analyzing Complex Market Dynamics

The clinical research sector’s intricacies demanded a holistic understanding. The PE firm sought to understand margin sustainability, predict therapeutic advancements and evaluate industry consolidation’s influence on partnerships. Amid diverse site portfolios and rapid revenue growth, they aimed to grasp sector intricacies to make informed investment choices.

How BluWave Helped
Expert Life Sciences Guidance

BluWave connected the PE firm with a seasoned life sciences/healthcare strategy consulting group, well-versed in CROs, SMOs and drug development pipelines. This firm brought profound insights to address margin profiles, therapeutic prospects and industry shifts. Their comprehensive analysis empowered the PE firm with a thorough grasp of clinical research dynamics.

The Result
Informed Investment Strategy

Collaborating with the life sciences/healthcare strategy consulting group, the PE firm acquired vital insights for their clinical research sector investment. Armed with a comprehensive understanding of sustainable margins, therapeutic potentials, and industry trends, the PE firm made informed decisions that aligned with their investment objectives.