Driving change with senior level leadership
Healthcare – Medical Alert Service for senior citizens
“Help me, I’ve Fallen…!”
A public company stand-alone security sensor and network based subsidiary sought additional product lines to improve its positioning against larger national competitors. Business development activities identified a global communications provider in the process of divesting its unprofitable Medical Alert Services division to an industry competitor. However, that sale fell though opening the opportunity for acquisition by our executive’s company.
Our Executive was able to acquire the company for less than 10% of the original auction price. The initial owner distributed the product through an indirect channel of 300 independent sales representatives in a major southern market. Additionally, there were excess facilities, office equipment, vehicles, test and assembly equipment, and $5M in new inventory as elements of the transaction.
Our Executive and his team moved the acquired unit from a loss to 20% Operating Income by:
- Changing target customer and decision maker
- Implementing new distribution strategies
- Transitioning acquired employees to existing pension and benefits plan with different terms and conditions
- Selling excess assets-vehicles and office equipment
- Revaluating extensive acquired inventory
- Closing underutilized facilities
- Centralizing monitoring, Customer Care and Product Assembly into one facility
- Integrating Medical Alert and Alarm services
- Implementing more responsive Customer Care processes
- Reducing customer churn rate under new strategies
- Obtaining exceptional price for subsidiary upon divestiture years later
This Medical Alert Service unit remained profitable and is now a thriving public company product serving the healthcare needs of senior citizens.
Copyright 2015. C-Level Interim Executives - an affiliate of The Verona Group. All Rights Reserved.