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
