Deploying a best-practice multi-site services organisation
Background
- The client is a sizable dental practice in Southern Europe, with more than 60+ sites operating in / around a geographic region.
- The dental industry here has suffered in the last few decades. A lack of dental coverage by the national insurance program, coupled with poor education about the importance of oral hygiene, made it challenging for dentists to market their services and retain patients.
- Our client had an aggressive growth plan through organic and acquisition growth. In the course of 2018 and early 2019 results were trending negatively, and the Private Equity owner was growing concern about the confidence of the provider’s 2019 financial and operational plan.
Business Relationship
- JENTS International initiated & conducted this opportunity in collaboration with a US-based partner.
- We were introduced to the provider through a relationship with the company’s primary Private Equity investor.
- Throughout our execution efforts, our Private Equity partner asked us to play a pivotal role in potential bank refinancing and even more so in the process of a potential equity event (in essence, we became part of the client Executive Team upon PE request).
Approach
- We were tasked with assessing the entire operating model of the organization, with emphasis on Site Operations, G&A, Sales and Marketing. Through management interviews, on-site (clinic) assessments, and data analysis, significant improvement opportunities across 4 main areas were identified:
- Sales and Marketing; efforts were not aligned to demographics, sales team was largely inexperienced in healthcare and not trained to best practices
- Site Variation; low performing sites were over staffed and over built with excess capacity.
- Labor Arbitrage; some back office functions were decentralized leading to poor utilization
- Headquarter – G&A; procurement was underperforming in recent years
Results
- The Business Analysis identified more than €2.7M in EBITDA savings and another €2M in Contribution Margin as a result or revenue enhancement.
- This was achieved through improvements in commercial capability (sales), best practice clinic playbooks, optimized org. design and improved operating practices to drive profitable scale.
- The improvement plan & efforts became a pivotal basis for the successful exit of the business, creating the second largest dental chain in the selected nation.