{"id":2192,"date":"2024-02-27T13:46:29","date_gmt":"2024-02-27T18:46:29","guid":{"rendered":"https:\/\/ampleader.com\/?p=2192"},"modified":"2024-02-27T13:46:29","modified_gmt":"2024-02-27T18:46:29","slug":"evolving-from-family-owned-to-globally-known","status":"publish","type":"post","link":"https:\/\/ampleader.com\/evolving-from-family-owned-to-globally-known\/","title":{"rendered":"Evolving from family-owned to globally known"},"content":{"rendered":"

Decades of short-term focus opened the door for much-needed PE vision and structure.<\/span><\/b><\/p>\n

The PE sponsor had a sizeable investment with a meaty thesis: expand beyond generics and into specialty pharma, commercialize an already-existing global pipeline, streamline the business, and rebuild culture after a uniquely tumultuous string of events. Our role was to assess alignment with (and appetite for) the investment thesis, current state of culture, and how to sequence leadership changes without putting business stability at risk. Most importantly, the PE sponsor needed to know whether the incumbent CEO was the right partner to restructure and rebuild with, or whether a more experienced leader was needed.<\/p>\n

CONFRONTING THE CHALLENGE: WHAT WE KNEW<\/span><\/b><\/p>\n

The aggressive value creation plan, based on both organic and acquisitive growth, raised a wide array of questions for Ampersand to answer. Chief among them were: would this formerly family-owned business truly have the flexibility to reposition and expand? What organizational, leadership, and structural changes were most critical to deliver? How could private equity ownership best help the business (and individual leaders) navigate significant cultural baggage? How cohesive is this team, and what are the risks associated with embedding stronger, more strategic leadership?<\/p>\n

With $443M EBITDA at diligence and a target exit of $1B EBITDA on the horizon, the PE sponsor needed to support the team to both execute on a near-term pipeline, maintain the existing portfolio, and launch specialty products. A successful transition beyond generics would require significant improvements across strategy creation, operational execution, cost management, manufacturing, R&D efficiency, and communication \u2013 all while turning a keen eye toward a clear and present need to overhaul leadership strength from the top down.<\/p>\n

AMPERSAND\u2019S APPROACH<\/span><\/b><\/p>\n

Creating an Organizational Scorecard<\/b> translated the strategy into specific accountabilities and benchmarks to track; outlined what the management team needs to accomplish to realize the investment thesis; enabled alignment, and created momentum around key strategic priorities.<\/p>\n

Against the backdrop of the Organizational Scorecard, Ampersand integrated elements of assessment and development that inspired candor and surfaced meaningful perspectives on the current state of the business, as well as appetite for the transformation ahead. Our Organizational Diligence<\/b> process integrated 1:1 interviews and light-touch 360-degree feedback to identify the organization\u2019s strengths and risks, the functional gaps to fill, while generating recommendations and action items to immediately address opportunity areas.\u00a0<\/span><\/p>\n

Building on Ampersand\u2019s initial recommendations, we performed Executive Diligence<\/b> to assess CEO candidates and assist the sponsor in selecting a best-in-class leader once the deal was closed.<\/p>\n

DISCOVERY: WHAT WE FOUND<\/span><\/b><\/p>\n

Ampersand found a nimble, committed leadership team which prided themselves on responsiveness, agility, and resiliency in enduring a tumultuous past \u2013 both in terms of leadership and in business growth. Eagerness for a true partner was clear, as each team member earnestly looked forward to the next phase of growth. And efforts to rebuild relationships and trust with regulators following recent turmoil had been paying off, laying the foundation for continued global expansion.\u00a0<\/span><\/p>\n

But operating with discipline and adequate change management \u2013 rather than defaulting to agile firefighting \u2013 posed a significant risk. Having embraced execution and reactivity as points of pride, learning how to proactively plan; support more rigorous R&D; invest in talent; nurture culture, or develop strategic acumen had been left to the wayside. The lift ahead to adapt from high-volume generics to a broader healthcare focus was not to be underestimated.<\/p>\n

And while the warm, open, and easy-going incumbent CEO brought much-needed transparency and stability to a struggling culture, his conflict aversion, under-developed judgement, and lack of strategic ability misaligned with the needs of the future organization. To fully commit to the charter ahead, an organization of this size and remit needed a true strategic, visionary leader to right the ship and steer it forward through uncharted waters.<\/p>\n

OUTCOMES: WHAT WE CONTRIBUTED<\/span><\/b><\/p>\n