Case Studies

New Venture - Medical Device: Market Introduction and Exit

Chief Operating Officer

Lead all business affairs from angel capital raise to initiating domestic and international distribution to planning investor exit.

Challenge: Commercialize innovative medical device to reduce pain from needle injections and provide doctor and patient time-savings; initially targeted toward the cosmetic injection industry and with broad therapeutic applications. Prepare device for strategic exit.

Solution: Teamed with the MD/Inventor/CEO and certified manufacturer to introduce device and communicate value proposition. Assessed strategic opportunity and developed and executed operating plan. Built highly nimble and low cost operating platform to test market approaches and adjust quickly, as necessary.

Results:

Sourced, negotiated, and closed exit with strategic buyer
Raised over $1.6 million from angel investors and state innovation funds
Established sales distribution through independent sales reps and online web sales/service
Launched international exports with distributor in local market
Developed national brand awareness with doctors and consumers through marketing and public relations campaigns (e.g., Rachel Ray Show; industry publications) print advertising, and at trade shows in the U.S. & Europe
Secured FDA compliant, US Patent, CE-mark, registered trademark and two university studies.

Transition New Platform to Fully-Operational Enterprise;

“Right-size” through Integrated Sales & Marketing and Operations

Chief Executive Officer (interim)

A $7.5 million budget, multi-line health and wellness and social services organization with 200 full and part-time employees serving over 5000 people.

Challenge: The board of directors required interim executive leadership to transition the organization to a fully-operational enterprise. During the early phase of the engagement, an operational assessment uncovered that the operating and financial structure fell significantly short of early pro-forma projections resulting in a $1.8 million (25%) annual budget shortfall.

Solution: As Chief Executive Officer (interim), developed, gained support for and implemented strategic and operational plans and lead management and staff through growth consistent with organization’s mission and vision. Addressed challenges head-on including making controversial but necessary, thoughtful decisions and presenting options to the highly-engaged board of directors.

Results:

Provided cohesiveness and leadership with improved operating efficiencies, integrated and targeted marketing and sales efforts, cross-functional support, and increased asset utilization.
Reduced the first phase of the budgeted deficit by over $1 million within 45 days with little to no impact on member services and programs while unit sales were increasing 50%.
Engaged with key constituents and community leaders as advocates and supporters for the organization.
Transitioned the organization as planned to new CEO selected from within.

Identify and Implement New Business Model

Internal Consulting Practice Leader (Fortune 100 company)

Higher Profit Margin and Improved Consumer Experience through New Business Model

National consumer medical hotline (3 million members; 60,000+ calls/year) for addressing immediate care needs

Challenge: Organization faced excessive billings from long-time vendor for undetermined reasons.

Solution: Spearheaded cross-functional team for identifying multiple root problems in part through Six Sigma techniques, sourcing alternative business model with a new strategic partner, and completing go-live implementation.

Results: Led to immediate $4 million (71%) annual cost savings, on-par metrics from among industry’s lowest, favorable vendor terms, qualified program referrals, and ability to launch marketing campaign to promote service. Success led to broader use throughout the company of the new selected vendor.

Financial and Operating Crisis Situation

Advisory and CEO & CFO (interim)

A $5 million budget, multi-line health and wellness and social services organization with 175 full and part-time employees serving over 5000 people

Challenge: Engaged by Board initially to uncover, investigate, and report on the root and scope of the problems, leading to executive management resignations. Due to concealed and unknown operating and financial mismanagement, the organization faced an unexpected annual operating deficit ($1 million) and debt ($3 million). Subsequently appointed Executive Director and CFO (interim) after garnering Board endorsement for turnaround objectives, strategies, and priorities.

Solution: Identified opportunities and began implementing a plan for reducing the deficit, rectifying operating deficiencies and regaining stakeholder confidence. Engaged and directed external consultants (e.g., fraud examiner, legal counsel and controller) and hired new independent auditors.

Results:

Stabilized operations, accelerated operating cash flows, secured unqualified auditor’s opinion, executed program re-pricing and cutbacks, uncovered and fixed failures in internal controls, restored operating discipline, maintained employee morale, advised on obtaining immediate short-term bank debt and long-term financing, and smoothed the transition for new executive director from within the industry.
Following engagement, appointed volunteer Audit Committee Chairman and instituted committee charter.

Business Plan Advisory for National Acquisition Roll-ups

A private equity firm with a diverse portfolio including in sports and media

Challenge and Solution: Private equity firm sought to invest in and also operate a Spanish yellow pages business and later the professional sports agency and broadcast rights business with a roll-up of premier companies and properties. Was engaged for well-researched and organized business plans to communicate the value proposition and operational plans for use in the private placement memoranda, for bank financing and acquisition candidates, and in internal operations.

Results:

Delivered timely business plans that helped to create leading national platforms.
Both businesses were successfully grown through acquisition and organic growth and sold to prominent Hispanic and European conglomerates as their respective platforms for entering the U.S. market.