Healthcare & Pharmaceuticals
MERU CASE STUDY
Identified $1.6M of EBITDA for a healthcare staffing company
- ~$100M healthcare staffing company that had acquired 4 companies in 12 months
- The Company’s investors wanted an outside perspective on organization structure, SG&A cost and margin improvement opportunities
- The goal was to align the organization structure to allow for growth of existing businesses and align the company toward an exit in 18-24 months
- Applied organization framework and identified set of positional moves to better align org structure with company goals
- Identified quick wins for enhancing gross margin
- Benchmarked back office costs with industry benchmarks and identified outliers
- Compared compensation of key sales roles at all levels with benchmarks
- Validated compensation of key non-sales roles with industry benchmarks
- Ensure current operations are aligned with objective of achieving key metrics over next 24-36 months prior to desired exit
Identified organizational structure changes worth $0.8-1.6M of incremental EBITDA while better aligning client for desired growth, improved strategic planning and execution, and achievement of financial metrics.
Identified gross margin opportunities worth $0.8-2.3M in EBITDA including implementing payment discount for managed care business, eliminating low gross margin assignments, changing comp recruiter cost structure, and changing travel reimbursement practices.
New executive compensation and non-executive compensation structures were identified to align incentives with performance.