Case Study: The Growth Continuum
The Growth Continuum is a 4-step tool that guides clients through the steps of a merger or acquisition, from it’s present form through to divestiture. In this case study, we illustrate how the Growth Continuum was implemented for a medical device/biotech company, showcasing the value added at each stage.
Stabilization and Preparation
Jacobsohn, then a newly arrived CFO at a B2C medical device company, initiated a comprehensive plan to stabilize the company’s financial health and lead it to recovery. Through collaborative efforts with his team, he redirected the company’s core identity from R&D to a service-based model and introduced new financing options for customers to avert a potential cash crisis. Under his leadership, the company achieved a successful turnaround within just four months.
In his capacity as project sponsor, Jacobsohn worked with cross-functional teams to overhaul a corporate-wide ERP platform, achieving 100% standardization while enhancing flexibility. A robust CRM afforded more sophisticated business development campaigns and enhanced client data tracking.
Additionally, Jacobsohn undertook measures to reduce the cost of capital by restructuring the financial framework, ultimately facilitating the company’s refinancing and majority acquisition by a private equity group, and positioning it for future growth and acquisition.
Growth through Acquisition
Leveraging his trusted network and financial expertise, Jacobsohn led the acquisition and roll-up and consolidation of competitors – the first in the Canadian medical cord blood industry. This strategic move included a valuation methodology and identification of synergies focusing primarily on a centralized processing model and support services, such as accounting and fund forecasting.
The acquisitions resulted in a remarkable increase of consolidated EBITDA (earnings before interest, taxes, depreciation, and amortization ) or discretionary earnings, demonstrating successful implementation of growth through acquisition by more than 5 times over 15 months.
Set Your Sights
With a decision by the Board of Directors to sell the consolidated company, Jacobsohn facilitated the divestiture process, working with intermediaries to execute the sale and exit of all shareholders. The sale resulted in substantial returns and surpassed overall shareholders’ objectives by generating over four and half times the investment in less than six years.
This case study highlights how the Jacobsohn Process Continuum guided a stand-alone company through strategic synergies and acquisitions, unlocking new growth opportunities and achieving remarkable success in the competitive biotech/medical device industry.