Interim VP of Finance Lays Foundation for Emerging Healthcare Management Firm’s Rapid Acquisition Plan

Built a cohesive, scalable finance infrastructure that allows a nascent firm to grow from two acquisitions to six within one year, and double its short-term revenue potential.

Client:

Healthcare Management Firm

Services:

Interim Executive Search
Interim VP

Industry:

Healthcare

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Our Challenge

Within a month of closing its second acquisition, a newly formed, PE-backed healthcare management services firm engaged Focus Search Partner’s Interim VP of Finance, known for his industry M&A experience, to establish a scalable finance infrastructure powered with the right technology, people, and processes to facilitate the firm’s rapid growth trajectory. Without a permanent CEO, COO, CFO, or CHRO in place and four to six LOIs in the immediate pipeline—plus more to follow—the company needed an experienced, hands-on leader to build a solid foundation to elevate financial transparency, risk mitigation, and information flow throughout the organization.

Build a solid foundation
Optimize technology, people and processes
Elevate financial transparency, risk mitigation, and information flow throughout the organization

Solutions & Outcomes

From its initial acquisitions, the company inherited disparate and outdated legacy finance systems that generated unreliable data. With less than five months before the next wave of planned LOI closings, our interim VP of Finance manually reconstructed the legacy GL data and mapped it to the new ERP system, which he helped implement. This new finance platform delivers optimal service to its current physician groups and can scale to effectively support numerous more groups.
Based on his prior FP&A experience at other healthcare firms in similar rapid expansion modes, and via collaborating with the interim CEO, our consultant developed three financial models critical to the organization’s rapid growth plan: Physician compensation, Revenue recognition, Cash flow forecasts
FSP’s interim VP of Finance’s technical skills, industry experience, and professionalism helped inform critical decisions as the business scaled and the firm’s PE sponsor searched for its permanent C-suite team.
Our consultant collaborated with the new senior leaders to develop the company’s first set of consolidated financials and establish a growth-oriented finance infrastructure that can support multiple upcoming acquisitions.
The organization now possesses the foundation necessary to support multiple acquisitions in one year, numerous future transactions, and exponential revenue growth.
Supported the implementation of Intacct ERP to allow for push-button reporting
Created a 13-week, forward-view cash flow forecast
Built automated reporting package with multiple views
Redesigned the physician compensation model
Established a standardized revenue recognition model
Designed easily replicable finance processes
Began automating the patient billing database
Transitioned acquired firms to accrual accounting
Recruited and hired a top-tier finance manager
Elevated the value proposition to acquisition targets

“As our permanent C-suite came on board, it was obvious that Focus Search Partner’s Interim VP of Finance had supported the business through a time of ambiguity and rapid change by managing key day-to-day deliverables and simultaneously engaging in the design and early deployment of a first-class, scalable finance infrastructure with limited leadership direction. With as many as six acquisitions on the cusp of closing and several more planned before year’s end, this foundation has set the stage for us to maximize our future value.”

– new Chief Executive Officer