VALUE CREATION PLANNING
Value Creation Planning usually starts with a post-investment 100-Day Plan.
This is a popular and important tool because experience shows that the first 100 days after a PE firm invests in a healthcare company are critical to long-term value creation.
Creating a 100-Day Plan:
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helps the investor team to quickly establish a relationship with management,
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accelerates understanding of the business, and
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encourage both the investor and management teams to maintain the same “work intensity” during the months after the deal closes as during the DD process.
Specific elements of a 100-Day Plan vary from project to project. Key aspects usually include operational improvements (e.g. staffing levels, procurement efficiencies etc) and revenue drivers – e.g. considering which services to grow or divest, synergies between specialties, key profit centres, market capture, and digital strategy.
The Plan includes building a set of indicators to monitor progress.