LEONVC | Case Study | Private Equity Due-Diligence

// Case study

Buy-side due diligence for Private Equity

Infusing data-driven diligence to understand the acquisition risks of a large EHR software company.

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3,521

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Investments quantified within our AI-based Calculation Engine — 150+ funds supported

Chat with our team

🌟

3,521

—

Investments quantified within our AI-based Calculation Engine — 150+ funds supported

Chat with our team

🌟

3,521

—

Investments quantified within our AI-based Calculation Engine — 150+ funds supported

Chat with our team

🌟

3,521

—

Investments quantified within our AI-based Calculation Engine — 150+ funds supported

Chat with our team

🌟

3,521

—

Investments quantified within our AI-based Calculation Engine — 150+ funds supported

Chat with our team

🌟

3,521 — Investments quantified within our AI-based Calculation Engine — 150+ funds supported — Chat with our team

Operating one of the largest healthcare software solutions in America.

As a premier software solutions provider in the healthcare sector, this organization is one of the largest providers of health information technology, used primarily by large U.S. hospitals and health systems to access, organize, store and share electronic medical records. In pursuit of a thorough understanding of internal risks before an acquisition, our Private Equity partner initiated a Team Kinetics study through LEONVC. The goal was to delve into the performance of the revenue team and pinpoint opportunities for improvement.

The revenue team, crucial for propelling the company's growth, confronts the task of sustaining peak performance in the face of fluctuating market demands and internal challenges. The study's objective was to unearth inefficiencies and misalignments, as well as to spotlight avenues for bolstering team performance.

Furthermore, it aimed to furnish our Private Equity client with a clear perspective on potential risks that could influence future growth, specifically within the revenue business function.

As a critical energy infrastructure company in North America, Kinder Morgan operates the largest underground natural gas storage business in the United States, with a working gas storage capacity of up to 700 billion cubic feet.

This storage capacity combined with the company's robust pipeline network connections allows it to reliably serve millions of customers through the coldest winters and hottest summers.

Given their critical role in providing energy access, Kinder Morgan is focused on continually improving operations and gaining new insights into energy markets. However, challenges ranging from volatile energy demands to disparate datasets can create the potential for inefficiencies, time-consuming processes and delayed responses.

Operating one of the largest healthcare software solutions in America.

Furthermore, it aimed to furnish our Private Equity client with a clear perspective on potential risks that could influence future growth, specifically within the revenue business function.

The study delivered a comprehensive analysis of the revenue team's performance to our Private Equity client, spotlighting key areas for enhancement and offering strategic recommendations for boosting efficiency and effectiveness.

To tackle these challenges, LEONVC utilized its diagnostic tools and Calculation Engine to conduct an extensive analysis of the company's revenue team, involving 1,645 employees across various departments. This approach allowed for the integration and quantification of unstructured HRIS data, turnover insights, existing employee engagement surveys, and performance reviews. By employing this methodology, we generated a comprehensive risk score and gleaned qualitative insights into the organization's health.

The Team Kinetics Diagnostic, powered by our Calculation Engine, surveyed a wide array of data points, resulting in an examination of team dynamics, workload distribution, leadership effectiveness, and more. The study's primary goal was to unearth the foundational issues leading to potential turnover among key personnel, discrepancies in team objectives, and the overarching stress factors impacting team performance.

Through the synthesis of diverse data sources, LEONVC was adept at converting the amassed information into practical insights promptly.

This multifaceted analysis offered a well-rounded view of the organization's internal landscape, pinpointing specific areas for intervention to enhance overall team effectiveness and organizational health.

This Revenue Function has a reduced level of readiness and higher than average attrition risk within its most impactful performers.

↳ Precise identification of high turnover risks among key team members, along with actionable strategies to mitigate these risks.

↳ Recommendations for operational enhancements to streamline processes and alleviate workload imbalances, aiming to boost efficiency and productivity.

↳ Insights into team dynamics and leadership effectiveness, providing a foundation for targeted development programs to enhance leadership skills and team cohesion.

↳ Strategic guidance for leveraging technology and data analytics to inform decision-making processes, enabling the portfolio company to proactively address market changes and capture growth opportunities efficiently.

By applying the recommendations from the LEONVC Team Kinetics study, the portfolio company is expected to adopt a more unified approach across departments in managing its revenue team. This strategic alignment will enhance the company's ability to adapt to market demands and improve operational efficiency, aligning with the Private Equity firm's objectives for optimizing performance and ensuring long-term profitability.

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