Healthcare-Managed Services Case Study
$3.1M Revenue Growth in Platform company and $7M for Add-Ons businesses
Increased sales margins boosting profitability and driving higher valuation
On the investment in Sales Xceleration’s growth services (cost vs. top-line revenue)
Integrated three sales teams effectively to drive synergy and cross-selling
A Private Equity sponsor acquired a healthcare-managed services organization (MSO) with a large customer footprint.
Even though the platform company’s quality of services was arguably better than that of their competitors, they were losing existing customers and market share, and they did not win nearly as many new clients as forecasted. More concerning, they didn’t know what the root cause of the problem was or how to address it.
The CEO was spending the majority of his time on the due diligence and integration of new acquisitions, causing the deal pipeline and revenue to decline further.
With the recent acquisitions, the Sales VP was overwhelmed, unable to manage the growing team and the complex sales of the add-on services. He also struggled to effectively integrate the three sales teams to execute the investment thesis.
Ineffective forecasting and planning of human capital for service delivery caused further churn in the customer base while also impacting the quality of services.
The platform company's sales team lacked the skills to sell the add-ons' complex technology and SaaS solutions, limiting revenue growth and deepening the shortfall.
The platform company missed its revenue goal by $2.6M/15%, two years into the hold period. The ineffective integration of add-ons, owner dependence of the add-ons, and inconsistent sales processes further contributed to the revenue shortfall.
Additional add-ons were on hold until the platform company achieved consistent, profitable growth. Operating partners needed proof that existing add-ons were integrated and generating revenue through cross-selling.
Important knowledge held by add-on leaders was underestimated, making integration difficult and jeopardizing success. Knowledge transfer of products, value propositions, client pain points, and sales processes to the expanded team was critical. Without effective integration, the full return on investment was at risk.
Inconsistent sales processes, metrics, and KPIs across the platform company and add-ons hindered visibility. Without clear indicators, operating partners struggled to assess business performance, complicating financial management.
With a $2.6M revenue shortfall, integration challenges, and leadership struggles, it was clear outside help was needed.
With acquisitions central to the investment thesis, the sponsor and CEO agreed the CEO should stay focused on them. However, they couldn’t risk another missed revenue goal. They needed an expert to drive growth and integrate the sales teams within 12 months—at a cost-effective price.
That is where Sales Xceleration came in, the seasoned Fractional VP of Sales was a cost-effective solution to their challenge. The engagement consisted of four stages:
A thorough assessment of the platform and add-ons' sales structures was conducted to identify revenue shortfalls and integration issues. The findings and action plan were presented to the Operating Partner and CEO, who approved the next steps.
With the Sales Assessment report as the baseline, a 100-day corrective action plan to build processes and turn around sales was developed and implemented.
With the clear gap in the sales leadership function, the CEO asked Sales Xceleration to take over the sales leadership position for the three companies and the day-to-day management of the sales teams during the engagement.
The Sales Xceleration Fractional Sales Leader acted as a single point of accountability to streamline sales integration, establish team accountability, and implement reporting and KPIs for transparency.
After the successful turnaround, the Fractional Sales Leader helped hire a new sales leader to ensure a smooth transition and sustained revenue growth.
The Sales Xceleration Fractional Sales Leader established a repeatable profitable revenue infrastructure for the portfolio company that delivered:
Through strategic sales leadership and process improvements, the platform company experienced $3.1 million in revenue growth in less than a year, exceeding expectations with a 20% margin increase. By implementing a structured sales playbook, the team shifted focus to high-value customers and more profitable service offerings, driving sustainable, repeatable growth.
To strengthen performance, the company restructured its sales teams, integrating the platform and add-ons while adding an inside sales team to enhance lead generation and pipeline management. Sales training and consultative selling techniques enabled the team to sell complex SaaS solutions, resulting in $7 million in additional revenue from cross-selling add-on services.
With weekly sales meetings, KPI reviews, and hands-on coaching, ineffective team members were identified and replaced with professionals aligned to the new strategy.
The introduction of standardized reporting and unified KPIs improved visibility for leadership, ensuring better forecasting, stronger customer retention, and a clear path for future acquisitions. Ultimately, the company achieved:
Initially skeptical of fractional sales leadership, the platform company’s CEO believed a full-time Sales VP was necessary. However, the overwhelming success within 10 months changed his perspective, making him a strong advocate for leveraging fractional sales executives. The Sales Xceleration Fractional Sales Leader not only delivered the expected results but also built a solid foundation, ensuring a smooth transition to a new full-time Sales Leader.
Once the Portfolio company and its add-ons met and exceeded their revenue goals, and the PE firm saw the successful execution of their investment thesis, they had confidence in the leadership team’s ability to deliver results. In addition:
The combined organizations saw a significant increase in value due to a $10.1M revenue boost ($3.1M from platform sales and $7M from SAAS services), a 20% margin increase, predictable subscription revenue, and successful integration of add-ons to further grow revenue and margin.
The new sales processes proved the team's ability to cross-sell and upsell add-on services to existing customers.
Standard reporting processes and common KPIs, with clear leading and lagging indicators, provided the Operating Partner with insights into the business's health.
Proving the investment thesis boosted trust with lending partners, enabling additional capital for new add-ons. With effective integration processes, the platform company acquired and integrated three add-ons, raising the enterprise value to over $90M.
Before engaging Sales Xceleration, declining revenue and weak add-on sales led the investment team to question their thesis and exit timeline. However, hiring a Sales Xceleration Fractional Sales Leader resulted in a 25x return in just one year, dramatically reversing the situation.
Customer Quote: “The Sales Xceleration Advisor restored stability and profitability, delivering over $3M in revenue growth within a year, successfully integrating sales teams, and accelerating add-on revenue growth to $7M.”
Get in touch with our revenue growth management experts today.
Or contact us directly: mnolan@salesxcleration.com l 610-659-1569
