Case Study

Building Value and Preparing For An Exit in Healthcare Technology

Person holding stethoscope looking at laptop

Insights

  • An innovative healthcare technology company needed help to improve its value and prepare the company for an eventual sale
  • Two Newport partners assumed executive positions within the company and prepared a roadmap focused on:
    • Improving the capital structure and liquidity of the company
    • Adding new functionality to the product line to be able to move up market to large provider organization
    • Securing an interim strategic investor
    • Minimizing the operating expenses of the company by outsourcing non-core functions
    • Expanding the sales and brand marketing of the company to help position against larger competitors

Actions

  • The Newport partners focused on strategic, financial and operational aspects of the company with an intent to create a business positioned for rapid growth, while maintaining a low fixed cost structure
  • Within a year, Newport had secured a large strategic investor for the company who helped fund the expansion of the product line and “white labeled” the product
  • A robust sales team was recruited and hired
  • Marketing was significantly enhanced through media contacts and weekly industry briefings focused on insights relevant to large provider organizations
  • Functions such as human resources were outsourced in order to manage costs
  • A detailed budget function was created and maintained to further maintain costs
  • Contracting was streamlined to facilitate doing business with the company and being able to react and close sales efficiently

Results

  • The company’s enhanced product was deployed to hundreds of hospitals within a year
  • The business grew significantly over the five-year engagement with the Newport partners and became a market leader in its space
  • The value of the company increased ten-fold, resulting in the company’s eventual sale to a large strategic buyer
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