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:
helps the investor team to quickly establish a relationship with management,
accelerates understanding of the business, and
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.